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 the above is correct.

Question

Quizplus · Accepted Answer

Acquiring land with a long-term note involves both an investing activity (acquiring an asset) and a financing activity (obtaining a long-term liability). However, since it doesn't involve any cash inflows or outflows, it is reported as a noncash investing and financing activity in the statement of cash flows.

Acquiring Land with a Long-Term Note Is