In 2019,Gary Kraen Company purchases $100,000 of equipment with cash.This purchase would be reported on Gary Kraen Company's 2019 statement of cash flows as:

Question

Quizplus · Accepted Answer

The purchase of equipment with cash is considered as an investing activity and would be reported under the cash flow from investing activities section on the statement of cash flows. This section provides information about cash flows related to the acquisition or disposal of long-term assets and investments. Therefore, options A and B are incorrect as financing and operating activities refer to other types of cash flows. Option D is also incorrect as the purchase of equipment has an impact on cash flows and should be disclosed on the statement of cash flows.

In 2019,Gary Kraen Company Purchases $100,000 of Equipment with Cash