A Company Purchased Machinery by Issuing a Long-Term Note Payable

question 67

True/False

A company purchased machinery by issuing a long-term note payable.This is an example of a non-cash investing and financing activity for the statement of cash flows.

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Definitions:

Magma Chamber

A region below a volcano where molten rock (magma) accumulates.

Molten Rock

Rock heated to a liquid state by extreme temperatures, found in the Earth's mantle and crust, also known as magma when underground and lava when it reaches the surface.

Underground Body

A general term for any substantial accumulation of material or geological structure located beneath the Earth's surface.

Pluton

A subsurface magma body or the mass of rock in which it solidifies; synonym: intrusion.