Allen Services purchased 20 delivery vehicles by issuing a 20-year installment note payable for $720,000.On the statement of cash flows,this transaction would be shown in the ________.
A) investing activities section
B) non-cash investing and financing activities section
C) operating activities section
D) financing activities section

Question

Quizplus · Accepted Answer

The purchase of delivery vehicles by issuing a note payable is a non-cash transaction that affects both investing (purchase of vehicles) and financing (issuance of a note payable) activities, so it is reported in the non-cash investing and financing activities section of the statement of cash flows.

Allen Services Purchased 20 Delivery Vehicles by Issuing a 20-Year