Cash paid for the purchase of property,plant,and equipment will be shown:

Question

Quizplus · Accepted Answer

Cash paid for the purchase of property, plant, and equipment is a type of investing activity and will be shown in the investing activity section of the cash summary budget. Option A is incorrect because materials purchases budget only includes purchases of materials or supplies. Option C is incorrect because the cash disbursements budget includes all cash outflows, but it doesn't classify the outflows as operating, investing, or financing activity. Option D is incorrect because cash paid for the purchase of property, plant, and equipment is not an operating expense, and hence it shouldn't be included in the operating activity section of the cash summary budget.

Cash Paid for the Purchase of Property,plant,and Equipment Will Be