Allen Company Bought a New Copy Machine to Be Depreciated

question 3

Multiple Choice

Allen Company bought a new copy machine to be depreciated straight line for three years for use by sales personnel. Where would this purchase be reflected on the Statement of Cash Flows?

• A) It would be an expense on the income statement so it would be reflected in operating cash flows.
• B) It would be an addition to property, plant and equipment so it would be an investing activity.
• C) It would be an addition to cash so it would be reflected in the change in cash.
• D) None of the above answers is correct.

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Definitions:

Physical Flexibility

The ability of joints and muscles to move through their full range of motion, important for overall mobility and health.

Muscle Strength

The ability of a muscle or group of muscles to exert force against resistance.

Body's Metabolism

The complex chemical processes occurring within a living organism that are necessary for maintaining life, including converting food into energy.

Isometric Exercise

A form of resistance training where the joint angle and muscle length do not change during contraction.