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View Full Version : Cash Flow Classification


candoit
Feb 27, 2007, 02:37 PM
Would the purchase of equipment be classified as an operating activity or an investing activity?

CaptainForest
Feb 28, 2007, 02:19 AM
That all depends.

Is the company in the business of buying equipment just to turn around and sell it? If so, that is an operating activity.

However, most likely they are not, so therefore it will be an investing activity.