The Purchase of Non-Current Assets by Issuing a Note Payable

question 78

Multiple Choice

The purchase of non-current assets by issuing a note payable is reported on the statement of cash flows in the:

• A) Notes to the statement of cash flows.
• B) Investing section.
• C) Operating section.
• D) Financing section.
• E) Both financing and investing sections.

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Definitions:

Parol Evidence Rule

A legal principle that prevents parties to a written contract from presenting extrinsic evidence of terms of the contract that contradict, modify, or vary contractual terms agreed to in writing.

Common Law

A body of unwritten laws based on legal precedents established by the courts, as opposed to statutory laws written by legislative bodies.

Article 2

Often associated with the Uniform Commercial Code (UCC) in the United States, governing the sale of goods and transactions.

UCC

The Uniform Commercial Code represents an extensive collection of statutes that regulate business dealings in the United States.