Identify the section of the statement of cash flows (a-d) where each of the following items would be reported.
-Exchange of land for note payable
A)Operating activities
B)Financing activities
C)Investing activities
D)Schedule of noncash financing and investing

Question

Quizplus · Accepted Answer

The exchange of land for a note payable is a noncash transaction that affects investing and financing activities but does not involve actual cash flows at the time of the transaction. Therefore, it is reported in the schedule of noncash financing and investing activities.

Identify the Section of the Statement of Cash Flows (A-D)