Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section.

Question

Quizplus · Accepted Answer

Purchasing equipment by issuing a note is a non-cash transaction and should not be shown in the cash flows from investing activities section of the statement of cash flows. It is typically disclosed in the notes to the financial statements.

Purchasing Equipment by Issuing a Six-Month Note Should Be Shown