Cash paid for equipment would be reported on the statement of cash flows in
A) the cash flows from operating activities section
B) the cash flows from financing activities section
C) the cash flows from investing activities section
D) a separate schedule

Question

Quizplus · Accepted Answer

Cash paid for equipment is part of investing activities, as it represents a capital expenditure related to the acquisition of a long-term asset that will be used to generate future income. The cash flows from operating activities section refers to transactions related to the company's core operations, while the cash flows from financing activities section relates to the company's transactions with investors such as issuing or repurchasing shares, paying dividends, or obtaining or paying off loans. A separate schedule is not necessary for this item as it can be easily included in the investing activities section.

Cash Paid for Equipment Would Be Reported on the Statement