Question

What section of a cash flow statement shows the cash spent on new equipment during the past accounting period? a. The investing sectionb. The operating sectionc.The financing sectiond.The cash flow statement does not give this information

Answer 1

The correct answer is letter "A": The investing section.

Step-by-step explanation:

Cash flow is the movement of cash into or out of an account, a business or an investment. When cash inflows exceed outflows this is generally considered to be a sign of good financial health. Specifically in the cash flows statement, the investing section records information about material capital (land and equipment) that was acquired by the company.