An acquisition of a plant asset financed by the issuance of long-term debt is not incorporated into the body of the statement of cash flows.

Question

Quizplus · Accepted Answer

An acquisition of a plant asset financed by the issuance of long-term debt is a non-cash financing and investing activity, which is disclosed in the notes to the financial statements or in a separate schedule, not in the body of the statement of cash flows.

An Acquisition of a Plant Asset Financed by the Issuance