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

Question

Quizplus · Accepted Answer

There isn't a cash flow from a financing activity. The signing of the note payable did not involve a cash flow.

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