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.

---

Definitions:

Phone Call

A voice conversation between two or more people transmitted over a distance using telecommunication devices.

Low Grade

A term used to describe something of below-average quality or rank, often in the context of academic grades or medical conditions.

Dispositional Attributions

The tendency to attribute people's behaviors to their inherent personal characteristics, rather than to situational factors.

Situational Attributions

The process of assigning the cause of a behavior or action to external circumstances or events, rather than to personal characteristics or dispositions.