Arturo Sales purchased some equipment for $12 000 by issuing a six-month bill payable.How would this transaction be shown on the cash flow statement?

Question

Quizplus · Accepted Answer

This transaction involves a non-cash exchange, as equipment is acquired by issuing a bill payable rather than using cash. Therefore, it is reported in the non-cash financing and investing activities section of the cash flow statement.

Arturo Sales Purchased Some Equipment for $12 000 by Issuing