The purchase of equipment financed by a long-term notes payable is an example of ________.
A) investing activity
B) financing activity
C) operating activity
D) non-cash investing and financing activity

Question

Quizplus · Accepted Answer

The purchase of equipment financed by a long-term notes payable is considered a non-cash investing and financing activity because it involves acquiring long-term assets (investing activity) without the immediate outlay of cash, financed through a long-term liability (financing activity).

The Purchase of Equipment Financed by a Long-Term Notes Payable