Partisan Services purchased 10 delivery vehicles by issuing a 10-year installment note payable for $320,000. How would this transaction be shown on the statement of cash flows?

Question

Quizplus · Accepted Answer

The acquisition of vehicles through issuing a note payable is a noncash transaction that affects both investing (purchase of vehicles) and financing (issuance of note payable) activities. Therefore, it is reported in the noncash investing and financing activities section of the statement of cash flows.

Partisan Services Purchased 10 Delivery Vehicles by Issuing a 10-Year