Cash paid for equipment would be reported in the statement of cash flows in
A) the cash flows from operating activities section
B) the cash flows from financing activities section
C) the cash flows from investing activities section
D) a separate schedule

Question

Quizplus · Accepted Answer

Cash paid for equipment represents a capital expenditure and is therefore reported in the cash flows from investing activities section of the statement of cash flows. This section includes cash transactions associated with the purchase and disposal of long-term assets, such as property, plant, and equipment.

Cash Paid for Equipment Would Be Reported in the Statement