Asked by Lynette Madison on Jun 24, 2024

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Cash paid for equipment would be reported on 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

Statement Of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, divided into operating, investing, and financing activities.

Operating Activities

Transactions and events that are directly related to the primary operations of a business, typically involving revenue and expense activities.

Investing Activities

Transactions involving the purchase or sale of long-term assets and other investments not considered cash equivalents, usually reflected in the cash flow statement of a company.

  • Learn to recognize and communicate the cash flows that result from investing and financing activities.
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Verified Answer

BJ
Brianna JonesJun 28, 2024
Final Answer :
C
Explanation :
The cash paid for equipment would be considered an investing activity, as it involves the acquisition of a long-term asset. Therefore, it would be reported on the statement of cash flows in the cash flows from investing activities section.