The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:
A)Operating activities.
B)Financing activities.
C)Investing activities.
D)Schedule of noncash financing and investing activities.
E)None of these as this is not reported on the statement of cash flows.

Question

Quizplus · Accepted Answer

The purchase of long-term assets by issuing a note payable is a noncash transaction and is reported in the schedule of noncash financing and investing activities, not in the main sections of the statement of cash flows.

The Purchase of Long-Term Assets by Issuing a Note Payable