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27 December, 11:19

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

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  1. 27 December, 11:26
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    Cash flow from investing activities

    Explanation:

    When a company purchases any tangible assets with cash, the company pays the cash to acquire those assets. It will create cash outflow. However, the company, at the same time, acquires an asset. As an asset will provide long-term value to the company, it shows as an investing activity of a cash flow statement. It also shows a negative value because of cash outflow.
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