Cash flows from acquiring and selling equipment are classified as
A) operating activities.
B) investing activities.
C) financing activities.
D) distribution activities.

Question

Quizplus · Accepted Answer

Cash flows from acquiring and selling equipment are classified as investing activities, as they involve the purchase or sale of long-term assets. Operating activities involve the primary activities of a business, such as sales and expenses, while financing activities involve raising capital and repaying debt. Distribution activities are not a category of cash flows.

Cash Flows from Acquiring and Selling Equipment Are Classified as