Which activity in a Cash Flow Statement typically involves purchases of equipment or property?

In a Cash Flow Statement, investing activities include transactions related to the acquisition or disposal of long-term assets, such as property, plant, and equipment. This category is focused on cash flows that impact the company's investment in its capital assets.

Purchasing equipment or property falls under this category because these transactions reflect the company's investment in resources that are expected to generate future economic benefits. Investing activities provide insight into how a company is allocating its resources for long-term growth, which is crucial for stakeholders assessing the company's investment strategy.

Understanding this distinction is important in analyzing a company’s cash flows, as it reveals how much cash is being used to maintain or expand its operational capacity through significant asset purchases. Operating activities, on the other hand, relate to the day-to-day revenue-generating activities, while financing activities involve cash transactions related to borrowing and repaying debts or issuing equity. Income activities is not a standard category in a Cash Flow Statement.