When Using the Direct Method, How Is the Purchase of Equipment

question 137

Multiple Choice

When using the direct method, how is the purchase of equipment for cash shown on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Noncash investing and financing activity

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Definitions:

Anticipation Of Delivery

Expectation or preparation for the receipt of goods or items that have been ordered, prior to their actual arrival.

Range Free

Often associated with farming and food production, indicating animals that are raised without being confined in tight spaces and have some degree of outdoor access.

Accord

A formal agreement between two or more parties, especially countries or organizations.

Satisfaction

The satisfaction or appeasement of a want, necessity, or craving.