Payment for the acquisition of inventories is shown on the statement of cash flows as

Question

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Payment for inventories is considered a part of operating activities because it relates to the main operations of the business. The statement of cash flows is divided into three sections: operating activities, investing activities, and financing activities. Payments for inventories are not related to the acquisition or sale of long-term assets, which fall under the investing activities category, nor are they related to financing activities such as the issuance of bonds or payment of dividends.

Payment for the Acquisition of Inventories Is Shown on the Statement