A Purchase of Land in Exchange for a Long-Term Note

question 141

True/False

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

---

Definitions:

Accounts Payable

Accounts payable is the amount a company owes to its suppliers or creditors for goods or services received but not yet paid for.

Inventory

Items and substances that a company stocks with the ultimate purpose of selling or further processing.

Perpetual Inventory System

A method of inventory management where inventory levels are updated in real-time after every sale or purchase transaction.

Physical Count

A periodic inventory auditing process where a business physically counts its entire inventory to verify stock and identify discrepancies.