In Which Section of the Statement of Cash Flows Would

question 42

Multiple Choice

In which section of the statement of cash flows would the purchase of new machinery be included?

• A) Cash flows from operating activities.
• B) Cash flows from investing activities.
• C) Cash flows from financing activities.
• D) Purchases of new equipment items are not included in the statement of cash flows.

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Definitions:

Law Of Supply

A fundamental principle stating that, all else equal, an increase in price results in an increase in quantity supplied.

Upward Slope

A graphical representation in which a line or curve moves higher as it progresses from left to right, indicating an increase in the variable being measured.

Price Of Gasoline

The amount of money charged per unit volume of gasoline, affected by factors such as crude oil prices, taxes, supply, and demand.

Price Of Oil

The cost per barrel of crude oil as determined by global markets.