A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under a. investing activities b. noncash investing and financing activities c. operating activities d. financing activities

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under a. investing activities b. noncash investing and financing activities c. operating activities d. financing activities

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 3PB: The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The...

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Question

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under

	a.	investing activities
	b.	noncash investing and financing activities
	c.	operating activities
	d.	financing activities

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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