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

Name: Payment for the acquisition of inventory is shown on a cash flow statement as a(n):
Brand: Quizplus
Rating: 5.0 (57 reviews)

Question

Quizplus · Accepted Answer

Payment for inventory is a part of operating activities since it is an expense incurred in the course of conducting the core operations of the business. Financing activities deal with raising capital, while investing activities involve the purchase and sale of long-term assets.

Payment for the Acquisition of Inventory Is Shown on a Cash