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

question 74

Multiple Choice

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

• A)As an operating activity
• B)As an investing activity
• C)As a financing activity
• D)As a noncash investing and financing activity

---

Definitions:

Organization's Members

Individuals who are part of a group, company, or institution and contribute to its culture, goals, and activities.

Potential Value

The inherent or future worth that can be derived from an asset, individual, or idea, based on its possible benefits or outcomes.

Planned Change Efforts

Refers to deliberate and systematic efforts undertaken by organizations to improve processes or alter their course of operation.

Key Source Of Energy

A primary or significant origin from which energy is obtained, affecting energy consumption and sustainability practices.