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

Question

Quizplus · Accepted Answer

The purchase of non-current assets by issuing a note payable does not involve cash transactions directly; therefore, it is not reported in the cash flows from operating, investing, or financing sections but is disclosed in the notes to the statement of cash flows.

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