Arturo Sales purchased some equipment for $12 000 by issuing a 6- month bill payable. How would this transaction be shown on the cash flow statement?

Question

Quizplus · Accepted Answer

This transaction involves issuing a bill payable, which is a non-cash financing activity, to purchase equipment, which is an investing activity. Therefore, it is reported in the non-cash financing and investing activities section.

Arturo Sales Purchased Some Equipment for $12 000 by Issuing