Purchase of equipment for cash is classified under which activity in the Statement of Cash Flows?

Explanation

Core Concept: Cash flows from Investing activities involve buying or selling long-term physical assets (property, plant, equipment) or financial securities of other entities. Context/Distractors: Operational activities relate to revenue-generating operations (inventory, wages). Financing activities relate to debt borrowing, stock issuance, or dividend payments. Exam Tip/Key Fact: Acquiring long-term productive assets represents a cash outflow in investing activities.