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

question 91

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)None of these as this is not reported on the statement of cash flows.

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Definitions:

Pueblo Revolt

A 1680 uprising of most of the indigenous Pueblo people against the Spanish colonizers in the province of Santa Fe de Nuevo México.

Spanish

Relates to Spain, its people, culture, or language, which is a Romance language originating in the Iberian Peninsula of Europe.

Pope

The bishop of Rome and the spiritual leader of the worldwide Catholic Church, regarded as the successor to Saint Peter, one of the apostles of Jesus.

Charles II

King of England, Scotland, and Ireland from 1660 to 1685, known for his role in the Restoration of the monarchy after the Interregnum period.