Cash received from the issuance of notes payable is a(n)________ activity on the statement of cash flows.
A) non-cash investing and financing
B) financing
C) operating
D) investing

Question

Quizplus · Accepted Answer

Issuing notes payable is a form of financing activity, as it represents an inflow of cash to the company from external borrowing. Therefore, option B is the correct choice. Option A, non-cash investing and financing, refers to activities such as exchanging non-cash assets or liabilities, while options C and D, operating and investing, respectively, do not apply to the issuance of notes payable.

Cash Received from the Issuance of Notes Payable Is A(n)________