Hollander Company gave a long- term note payable in the amount of $285,000 to acquire a new piece of equipment. This transaction will be reported on the statement of cash flows as a:
A) $285,000 investing inflow and $285,000 financing outflow
B) $285,000 operating outflow and $285,000 financing inflow
C) noncash transaction reported in a separate schedule
D) $285,000 investing outflow and $285,000 financing inflow

Question

Quizplus · Accepted Answer

The transaction involves a noncash exchange of a note payable for equipment, which is reported in a separate schedule or disclosure, not in the main sections of the cash flow statement.

Hollander Company Gave a Long- Term Note Payable in the Amount