The Purchase of Long-Term Assets by Issuing a Note Payable

question 130

Multiple Choice

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

• A) Operating activities.
• B) Financing activities.
• C) Investing activities.
• D) Schedule of noncash financing and investing activities.
• E) Reconciliation of cash balance.

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Definitions:

Formal Plan

A detailed, written document that describes the strategies, activities, resources, and timelines for achieving specific goals.