Question

Purchase of furniture is a cash outflow from activity in a cash flow statement.

• A. operating
• B. investing
• C. financing
• D. payment

Answer 1

The correct option is B investing

Purchase of furniture is a cash outflow from investing activity. Cash flow from investing activities is an item on the cash flow statement that reports the aggregate change in a company's cash position resulting from investment gains or losses and changes resulting from amounts spent on investments in capital assets, such as plant and equipment.