Lincoln Company engaged in this transaction: Acquired a long-term investment by issuance of long-term debt.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A)Investing activities section.
B)Operating activities section.
C)Schedule of noncash investing and financing transactions.
D)Financing activities section.

Question

Quizplus · Accepted Answer

This transaction involves acquiring an investment through the issuance of long-term debt, which does not involve cash flows. Therefore, it is reported in the schedule of noncash investing and financing transactions, not in the cash flows from operating, investing, or financing activities sections.

Lincoln Company Engaged in This Transaction: Acquired a Long-Term Investment