Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Match the reporting classifications with the transactions described below.
-Financing cash inflow
A)Cash collection of a nontrade note receivable.
B)Cash collected on accounts receivable.
C)Issuance of a long-term note payable for cash.
D)Cash purchase of securities issued by another corporation.
E)Payment of a property dividend.

Question

Quizplus · Accepted Answer

The issuance of a long-term note payable for cash is classified as a financing cash inflow because it involves obtaining funds from external sources (e.g., lenders) that will be used for long-term financing purposes.

Listed Below Are the Reporting Classifications for a Statement of Cash