The purchase of equipment financed by a Long-Term Notes Payable is an example of:
A)investing activity.
B)financing activity.
C)operating activity.
D)non-cash investing and financing activity.

Question

Quizplus · Accepted Answer

This transaction is a non-cash investing and financing activity because it involves acquiring equipment (an investing activity) through a long-term note payable (a financing activity) without using cash.

The Purchase of Equipment Financed by a Long-Term Notes Payable