To Go Company Is Preparing Its Statement of Cash Flows

question 8

Multiple Choice

To Go Company is preparing its statement of cash flows using the indirect method.During the year,they purchased equipment for $15,000 cash.Which of the following statements is true?

• A)$15,000 would be shown as a negative cash flow in the operating activities section.
• B)$15,000 would be shown as a negative cash flow in the investing activities section.
• C)$15,000 would be shown as a positive cash flow in the investing activities section.
• D)$15,000 would be shown as a positive cash flow in the financing activities section.

---

Definitions:

Aorta

The largest artery in the body, carrying oxygen-rich blood from the heart to various parts of the body.

Contracts

Legally binding agreements between two or more parties that outline obligations and rights.

Pulmonary Embolism

A blockage in one of the pulmonary arteries in the lungs, usually caused by blood clots that travel from the legs or other parts of the body.

Chest Pain

A symptom that can be caused by a variety of conditions, ranging from non-serious issues like indigestion to life-threatening ones like heart attacks.