Arturo Sales purchased some equipment for $12 000 by issuing a six-month bill payable.Because this was a non-cash transaction,it would not be shown in the main body of the cash flow statement but in a separate section for non-cash investing and financing activities.

Question

Quizplus · Accepted Answer

This statement is true. Non-cash investing and financing activities, including the issuance of bills payable, are reported in a separate section of the cash flow statement.

Arturo Sales Purchased Some Equipment for $12 000 by Issuing