CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Crashem Co. purchases equipment for $180,000 in cash. How would this transaction affect its financial statements?
A. It would increase fixed assets and decrease cash on the balance sheet; It would be cash outflow from investing activities on the statement of cash flows.
B. It would increase expense on the income statement and increase fixed assets on the balance sheet; It would be cash outflow from operations on the statement of cash flows.
C. It would increase fixed assets and increase long-term debt on the balance sheet; It would be cash outflow from operations on the statement of cash flows.

User Contributed Comments 1

User Comment
achu PPE items part of CF-INVESTMENTS, not CF Operations!
You need to log in first to add your comment.