Monday, 19 September 2016

Investing activities deal with the cash acquisition and sale of long-term assets.What type of activity is the purchase of equipment for cash?

Investing activities deal with the cash acquisition and sale of long-term assets.


What type of activity is the purchase of equipment for cash?

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A non-cash investing activity that goes into a separate schedule of the notes of the statement of cash flows


Investing activity


Financing activity


Operating activity

 In the introductory phase, the cash used in operations will exceed the cash generated, the company will be spending cash to purchase productive fixed assets, and will need to issue stock or debt to make these purchases.


In which stage of the corporate life cycle will cash flows from the operations and from investing activities be negative, and the cash flows from financing be positive?

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Decline phase


Maturity phase


Introductory phase


Growth phase



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