Nebraska Company gave a long-term note payable in the amount of $285,000 to acquire a new piece of land.This transaction will be reported on the statement of cash flows as a ________.
A) investing activity
B) financing activity
C) investing and financing activity
D) noncash investing and financing transaction

Question

Quizplus · Accepted Answer

The acquisition of land through a long-term note payable is considered a noncash transaction because it does not directly involve cash flows. It is recorded as a noncash investing and financing transaction on the statement of cash flows.

Nebraska Company Gave a Long-Term Note Payable in the Amount