A to Z Corporation issued a $30,000 note payable to borrow cash from the bank.On the Statement of Cash Flows, the transaction would be classified as:
A) Cash Flows from Operating Activities.
B) Cash Flows from Investing Activities.
C) Cash Flows from Financing Activities.
D) Noncash transaction.

Question

Quizplus · Accepted Answer

Issuing a note payable to borrow cash is a financing activity, as it involves obtaining long-term financing through borrowing.

A to Z Corporation Issued a $30,000 Note Payable to Borrow