Under what section of the Statement of Cash Flows would you classify the purchase of equipment by issuing a long-term note payable?
A) Operating.
B) Investing.
C) Financing.
D) Noncash activity.

Question

Under what section of the Statement of Cash Flows would you classify the purchase of equipment by issuing a long-term note payable?
A)	Operating.
B)	Investing.
C)	Financing.
D)	Noncash activity.

Quizplus · Accepted Answer

The purchase of equipment by issuing a long-term note payable is a noncash activity because it does not involve cash inflow or outflow at the time of the transaction. Such activities are typically disclosed in a separate schedule or in the notes to the financial statements.

Under What Section of the Statement of Cash Flows Would