For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity.
-Purchased equipment in exchange for a 6-month note payable.
A)O
B)N
C)I
D)F

Question

Quizplus · Accepted Answer

Purchasing equipment in exchange for a note payable is considered a significant noncash financing and investing activity because it involves acquiring long-term assets without immediate cash outflow, impacting both investing and financing aspects but not directly involving operating cash flows.

For Each of the Following Items, Indicate Whether It Would