Under What Section of the Statement of Cash Flows Would

question 105

Multiple Choice

Under what section of the Statement of Cash Flows would you classify the purchase of equipment by issuing a long-term note payable?

• A) Operating.
• B) Investing.
• C) Financing.
• D) Noncash activity.

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Definitions:

Hubdometer

A wheel hub located odometer used to track and display mileage; especially useful on trailers to schedule service intervals.

Trailer Mileage

The distance that a trailer has traveled or is capable of traveling, often used as a measure of its usage or lifespan.

Maintenance Scheduling

The process of planning and organizing tasks and procedures for the upkeep of equipment, machinery, or systems to ensure optimal performance and avoid failures.

Dry Bulk Pressure Hopper

A type of container used for transporting dry, bulk materials, where pressure is used to aid in the unloading of materials.