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    candoit's Avatar
    candoit Posts: 1, Reputation: 1
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    #1

    Feb 27, 2007, 02:37 PM
    Cash Flow Classification
    Would the purchase of equipment be classified as an operating activity or an investing activity?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    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.
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