Final answer:
The statement is true; cash paid for equipment is recorded as an Investing activity in the Statement of Cash Flows, reflecting long-term investment in a private university's capital assets.
Step-by-step explanation:
The statement is true. Cash paid for equipment is indeed classified as an Investing activity in the Statement of Cash Flows for any entity, including a private university. The Statement of Cash Flows is one of the financial statements used by businesses and organizations to record all cash transactions, which are classified into three categories: Operating, Investing, and Financing activities.
Investing activities include the purchase and sale of long-term assets and investments that are not considered cash equivalents. When a private university buys equipment, it is making a long-term investment in its capital assets, and therefore, the cash outflow related to this transaction would be reported under Investing activities. This helps stakeholders understand how the university's cash is being utilized in relation to its growth and capital infrastructure.