The purchase of equipment using cash is an investing activity.

Name: The purchase of equipment using cash is an investing activity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Purchasing equipment is considered an investing activity because it involves using cash to acquire a long-term asset that will benefit the company's operations over several years. Investing activities are one of the three categories of cash flows in a company's statement of cash flows, alongside operating and financing activities.

The Purchase of Equipment Using Cash Is an Investing Activity