The purchase of long-term assets by issuing a note payable is reported on the statement of cash flows in the:
A) Operating section.
B) Financing section.
C) Investing section.
D) Notes to the statement of cash flows.
E) Both financing and investing sections.

Question

Quizplus · Accepted Answer

The purchase of long-term assets by issuing a note payable is a non-cash transaction and is typically disclosed in the notes to the statement of cash flows, rather than in the main sections of the statement.

The Purchase of Long-Term Assets by Issuing a Note Payable