McGill purchases additional office equipment to better serves its customers.This purchase is classified as what type of activity?

Question

Quizplus · Accepted Answer

The purchase of office equipment is classified as an investing activity, as it involves the acquisition of long-term assets that are expected to generate returns for the business over a period of time. This activity does not involve the day-to-day operations of the business (operating activities) or the financing of the business through debt or equity (financing activities).

McGill Purchases Additional Office Equipment to Better Serves Its Customers