Payment for the acquisition of inventory is shown on a cash flow statement as a(n):

Question

Quizplus · Accepted Answer

Payment for the acquisition of inventory is considered a part of the operating activities section of the cash flow statement because it is an expense related to the company's primary business operations. Investing activities are related to the purchase or sale of long-term assets, while financing activities are related to borrowing or repaying debt or issuing equity.

Payment for the Acquisition of Inventory Is Shown on a Cash