A company borrows $2,000,000 and uses the money to purchase high technology machinery for its operations.These are examples of
A) cash flow from financing and cash flow from operations.
B) cash flow from investing and cash flow from operations.
C) cash flow from financing and cash flow from investing.
D) cash flow from investing and cash flow from financing.

Question

Quizplus · Accepted Answer

Borrowing money is considered a financing activity, while purchasing machinery is an investing activity.

A Company Borrows $2,000,000 and Uses the Money to Purchase