During the fiscal year ended June 30,2009,a private,not-for-profit hospital acquired equipment costing $75,000,with cash contributed by donors who restricted their contributions for this purpose.On the hospital's statement of cash flows for the year ended June 30,2009,the equipment acquisition should be reported in which of the following sections? I.Operating activities
II)Financing activities
III)Investing activities

Question

Quizplus · Accepted Answer

The purchase of equipment is classified as an investing activity on the statement of cash flows, as it involves the acquisition of a long-term asset.

During the Fiscal Year Ended June 30,2009,a Private,not-For-Profit Hospital Acquired