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In the cash flow statement, purchasing new machinery is classified under which activity?

  1. A Operating activities
  2. B Investing activities
  3. C Financing activities
  4. D Non-cash disclosures
Answer

Investing activities

Investing activities cover the purchase and sale of long-term assets and investments. Financing covers equity and borrowings, and operating covers day-to-day trading.

All Accounting MCQs

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