The purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets.

Question

Quizplus · Accepted Answer

The purchase of supplies is considered an operating activity on the statement of cash flows because it is part of the day-to-day operations of the business. Investing activities typically involve the purchase or sale of long-term assets, such as property, equipment, or investments.

The Purchase of Supplies Appears on the Statement of Cash