The purchase of machinery by signing a long-term note payable would be reported in the following section of the statement of cash flows:

Question

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The purchase of machinery by signing a long-term note payable is a noncash transaction that affects both investing (purchase of machinery) and financing (issuance of a note payable) activities. Therefore, it is reported in the noncash investing and financing activities section of the statement of cash flows.

The Purchase of Machinery by Signing a Long-Term Note Payable