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.

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Definitions:

Embryonic

Pertaining to an embryo or the development phase of a living being immediately after fertilization, during which rapid growth and formation of primary structures occur.

Fetal

Pertaining to an unborn offspring within the womb, particularly after the major structures and organs have begun to develop.

Gestation

The period of development between fertilization and birth in viviparous organisms, often referring to human pregnancy.

Fetus

The developmental stage of a human being in the womb from the ninth week after fertilization until birth.