Allen Services purchased twenty delivery vehicles by issuing a 20-year installment Note Payable for $720,000.On the statement of cash flows,this transaction would be shown in the ________.

Question

Quizplus · Accepted Answer

This transaction involves a non-cash exchange, as the vehicles were purchased by issuing a note payable rather than using cash. Therefore, it is reported in the non-cash investing and financing activities section.

Allen Services Purchased Twenty Delivery Vehicles by Issuing a 20-Year