Which of the following sections from the statement of cash flows would include the payment of a note payable by issuing common stock?
A) The payment of a note payable by issuing common stock would be included in the investing section.
B) The payment of a note payable by issuing common stock would be included in the financing section.
C) The payment of a note payable by issuing common stock would be included in the operating section.
D) The payment of a note payable by issuing common stock would not be included in the noncash investing and financing section.

Question

Quizplus · Accepted Answer

The payment of a note payable by issuing common stock is a noncash transaction that does not affect cash flow directly. Therefore, it is reported in the noncash investing and financing activities section of the statement of cash flows, not in the operating, investing, or financing sections.

Which of the Following Sections from the Statement of Cash