From the following list, identify whether the change in the account balance during the year would be reported as an operating (O), an investing (I), or a financing (F) activity or not separately reported on the statement of cash flows (N).Assume that the indirect method is used to determine the cash flows from operating activities.
-Notes payable
A)O - Operating
B)I - Investing
C)F - Financing
D)N - Not separately reported on the Statement of Cash Flows

Question

Quizplus · Accepted Answer

Notes payable is a liability that results from financing activities, such as borrowing money. Therefore, the change in the account balance during the year would be reported as a financing activity on the statement of cash flows.

From the Following List, Identify Whether the Change in the Account