The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:
A) Schedule of noncash investing or financing activity.
B) Financing activities.
C) This is not reported on the statement of cash flows.
D) Investing activities.
E) Operating activities.

Question

Quizplus · Accepted Answer

The purchase of equipment is considered an investing activity, as it relates to the acquisition of long-term assets. Therefore, it should be reported in the investing activities section of the statement of cash flows.

The Appropriate Section in the Statement of Cash Flows for Reporting