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) Financing activities.
B) Investing activities.
C) Schedule of noncash financing and investing activities.
D) Operating activities.
E) Reconciliation of cash balance.

Question

Quizplus · Accepted Answer

This transaction involves a noncash exchange, so it is reported in the schedule of noncash financing and investing activities, not in the main sections of the cash flow statement.

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