Partisan Services purchased 10 delivery vehicles by issuing a 10-year installment note payable for $320,000.This transaction is shown in the investing activities section of the statement of cash flows.

Question

Quizplus · Accepted Answer

The purchase of delivery vehicles through an installment note payable is a non-cash financing activity, not an investing activity, and should be disclosed in the non-cash investing and financing activities section of the statement of cash flows.

Partisan Services Purchased 10 Delivery Vehicles by Issuing a 10-Year