Lincoln Company engaged in this transaction: Acquired 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 a long-term investment through the issuance of long-term debt, which does not involve cash flow. Therefore, it is reported in the schedule of noncash investing and financing transactions, not in the cash flows from operating, investing, or financing sections.

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