Arturo Sales purchased some equipment for $12,000 by issuing a 6-month note payable. How would this transaction be shown on the statement of cash flows?

Question

Quizplus · Accepted Answer

The purchase of equipment by issuing a note payable is a non-cash transaction that affects both financing and investing activities but does not involve the actual flow of cash. Therefore, it is reported in the noncash financing and investing activities section of the statement of cash flows.

Arturo Sales Purchased Some Equipment for $12,000 by Issuing a 6-Month