Acquiring land with a long-term note is:
A) Reported as an investing activity in the statement of cash flows.
B) Reported as a financing activity in the statement of cash flows.
C) Reported as a noncash investing and financing activity.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Acquiring land with a long-term note is a noncash transaction because no actual cash is exchanged. It involves obtaining land in exchange for a long-term note payable. Therefore, it is reported as a noncash investing and financing activity in the statement of cash flows.

Acquiring Land with a Long-Term Note Is