Partisan Services purchased 10 delivery vehicles by issuing a 10- year instalment bill payable for $320 000. How would this transaction be shown on the cash flow statement?

Question

Quizplus · Accepted Answer

This transaction involves a non-cash exchange, as the vehicles were acquired by issuing a bill payable rather than using cash. Therefore, it is reported in the non-cash investing and financing activities section.

Partisan Services Purchased 10 Delivery Vehicles by Issuing a 10-