Under what section of the Statement of Cash Flows would you classify the purchase of equipment by issuing a long-term note payable?
A)Operating.
B)Investing.
C)Financing.
D)Noncash activity.

Question

Quizplus · Accepted Answer

The purchase of equipment by issuing a long-term note payable is classified under noncash activities in the Statement of Cash Flows because it involves acquiring an asset without the immediate outflow of cash; instead, it involves creating a long-term liability.

Under What Section of the Statement of Cash Flows Would