The purchase of non-current assets by issuing a note payable is reported on the statement of cash flows in the:
A) Notes to the statement of cash flows.
B) Investing section.
C) Operating section.
D) Financing section.
E) Both financing and investing sections.

Question

Quizplus · Accepted Answer

The purchase of non-current assets by issuing a note payable is a non-cash transaction and is typically disclosed in the notes to the statement of cash flows, rather than in the main sections of the statement itself.

The Purchase of Non-Current Assets by Issuing a Note Payable