A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

Question

Quizplus · Accepted Answer

A purchase of land in exchange for a long-term note payable is a non-cash transaction and is not reported in the investing section of the statement of cash flows. Instead, it is disclosed in the notes to the financial statements or in a separate schedule.

A Purchase of Land in Exchange for a Long-Term Note