Series 79 practice questioneasyCash Flow Statement Categories
Which section of the cash flow statement would typically include cash paid for inventory purchases?
- ACash flows from investing activities
- BCash flows from operating activities✓ Correct answer
- CCash flows from financing activities
- DSupplemental information
Explanation
Why B — Cash flows from operating activities
Cash paid for inventory is an operating activity, as it relates to core business operations. Investing activities are for asset purchases or sales, financing activities for debt/equity, and supplemental information is not a main statement category.
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