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:

Interpersonal Communication

The process of exchanging information, feelings, and meanings through verbal and non-verbal messages face-to-face between two or more people.

Nonverbal Behavior

Communication without the use of spoken language, including gestures, facial expressions, body language, and other physical cues.

Situational Cues

Environmental indicators or signals that provide context or influence individuals' perceptions and behaviors in a given situation.

Nonverbal Signals

Forms of communication without words, such as gestures, body language, posture, tone of voice, and facial expressions.