A firm's purchase of plant and equipment would be considered a

Question

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A firm's purchase of plant and equipment is considered a use of cash for investment activities because it involves acquiring long-term assets that are intended to increase the company's productive capacity and generate future income. Financing activities involve obtaining or repaying capital, such as issuing or buying back shares, paying dividends, or taking out or repaying borrowing. Operating activities involve transactions related to the core business operations, such as sales, purchasing inventory or supplies, paying employees, or collecting accounts receivable.

A Firm's Purchase of Plant and Equipment Would Be Considered