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:

HR Professionals

Individuals specializing in managing human resources, focusing on recruitment, management, and providing direction for the people who work in an organization.

Training Investments

The allocation of resources, such as time and money, towards the development and education of employees to improve their skills and competencies.

Costing Process

The Costing Process involves determining the expenses associated with producing a product or providing a service, including materials, labor, and overhead costs.

Senior Management

The top level of management in an organization, responsible for strategic planning and decision-making.