The purchase of office equipment for $15,000 cash is a cash outflow from financing activities. is a cash outflow from operating activities. is a cash outflow from investing activities. does not affect cash flows.

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The purchase of office equipment for $15,000 cash is a cash outflow from financing activities

Accounting Mar 20, 2021

The purchase of office equipment for $15,000 cash

1. is a cash outflow from financing activities.
2. is a cash outflow from operating activities.
3. is a cash outflow from investing activities.
4. does not affect cash flows.

Expert Solution

Answer: c . is a cash outflow from investing activities .

The cash flow statement is classified under three subsections, that is, the operating activities, the investing activities and the financing activities. All the cash flows that are related to the acquisition/sale of assets are related to the investing activities, so the purchase of office equipment will be considered as a cash outflow from investing activities.

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