Question

In: Accounting

Which of the following items would not be included as a cash flow from operating activities...

Which of the following items would not be included as a cash flow from operating activities in a statement of cash flows?

Multiple Choice

Collections from customers.

Interest on note payable.

Purchase of equipment.

Purchase of inventory.

Solutions

Expert Solution

Purchase of equipment.

Purchase of equipment is a cash flow from investing activities because it is an outflow for growth aspects of the company and a capital expenditure, which is considered to be investing activities.


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