The Purchase of Office Equipment for $15,000 Cash

question 7

Multiple Choice

The purchase of office equipment for $15,000 cash:

• A) is a cash outflow from financing activities.
• B) is a cash outflow from operating activities.
• C) is a cash outflow from investing activities.
• D) does not affect cash flows.

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Definitions:

Cyclical

Characterized by or subject to cycles, often used to describe economic activities that fluctuate with the overall state of the economy.

Trend Factors

Variables or elements that influence the direction or rate of movements in data over time, often used in forecasting future financial or economic activity.

Normal Level

A standard or average condition, often referring to the usual level of production activity or economic operation under normal circumstances.

Support Departments

Divisions within an organization that provide essential services or support to production departments but do not directly create products or services.