Royer Corporation engaged in this transaction:
Issued long-term note for plant assets.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Schedule of noncash investing and financing transactions
B) Financing activities section
C) Operating activities section
D) Investing activities section

Question

Royer Corporation engaged in this transaction:
 Issued long-term note for plant assets.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Schedule of noncash investing and financing transactions
B) Financing activities section
C) Operating activities section
D) Investing activities section

Quizplus · Accepted Answer

This transaction involves issuing a long-term note in exchange for plant assets, which is a noncash transaction. Such transactions are typically disclosed in a separate schedule of noncash investing and financing activities, rather than in the main sections of the cash flow statement.

Royer Corporation Engaged in This Transaction