Cash proceeds from issuing a long-term note payable is classified as an operating activity.

Name: Cash proceeds from issuing a long-term note payable is classified as an operating activity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cash proceeds from issuing a long-term note payable is classified as a financing activity because it is a source of financing for the company. Operating activities generally include cash receipts and payments related to the day-to-day operations of the business.

Cash Proceeds from Issuing a Long-Term Note Payable Is Classified