The cash paid to purchase equipment is included in the ________ section of the statement of cash flows.

Question

Quizplus · Accepted Answer

Cash paid to purchase equipment is a capital expenditure and is included in the investing section of the statement of cash flows, which shows cash flows related to the purchase and sale of long-term assets. The operating section shows cash flows related to the core business operations while the financing section shows cash flows related to financing activities, such as issuing or repaying debt and paying dividends. Noncash items are typically shown in a separate section, not included in the cash flow statement itself.

The Cash Paid to Purchase Equipment Is Included in the ________