On the statement of cash flows, how would a company report the purchase of machinery?

Question

Quizplus · Accepted Answer

The purchase of machinery is a capital expenditure and is therefore reported as cash used in investing activities on the statement of cash flows. This is because it involves the acquisition of a long-term asset that will be used in the company's operations and is expected to provide future benefits. Therefore, it is considered an investing activity rather than an operating or financing activity.

On the Statement of Cash Flows, How Would a Company