A company purchased machinery by issuing a long-term note payable.This is an example of a non-cash investing and financing activity for the statement of cash flows.

Question

Quizplus · Accepted Answer

Non-cash investing and financing activities are transactions that do not involve the actual receipt or payment of cash. Issuing a long-term note payable to purchase machinery is an example of a non-cash financing activity.

A Company Purchased Machinery by Issuing a Long-Term Note Payable