Green Bay Sales purchased equipment for $50,000 by issuing a three-year note payable.On the statement of cash flows,this transaction would be shown in the ________.

Question

Quizplus · Accepted Answer

This transaction is a non-cash activity because it involves acquiring equipment (an investing activity) through issuing a note payable (a financing activity) without the immediate outflow of cash. Therefore, it is reported in the non-cash financing and investing activities section of the statement of cash flows.

Green Bay Sales Purchased Equipment for $50,000 by Issuing a Three-Year