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KAJ Incorporated Purchased a Machine Costing $100,000 by Paying $20,000

Question 43

Multiple Choice

KAJ Incorporated purchased a machine costing $100,000 by paying $20,000 and signing an $80,000 note payable.How would this transaction be reported within the cash flow from investing activities section of the cash flow statement?


A) An outflow of $100,000.
B) An outflow of $80,000.
C) An outflow of $20,000.
D) It would have no effect.

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