Payment for the acquisition of inventories is shown on the statement of cash flows as
A) An investing activity
B) A financing activity
C) An operating activity
D) Either an operating activity or a financing activity

Question

Quizplus · Accepted Answer

Payment for the acquisition of inventories is recorded as a cash outflow under operating activities because it relates to the company's primary operations of buying and selling goods.

Payment for the Acquisition of Inventories Is Shown on the Statement