If No Cash Was Exchanged in the Purchase of Equipment

question 77

True/False

If no cash was exchanged in the purchase of equipment financed entirely with a note payable,we represent this as both an investing activity and a financing activity in the statement of cash flows.We represent this as a noncash activity either directly after the cash flow statement or in a note to the financial statements.

---

Definitions:

Robbers Cave Experiment

The Robbers Cave Experiment was a psychological study on intergroup conflict and cooperation, finding that competitive tasks increase hostility between groups while cooperative tasks reduce it.

Cognitive Bases

Fundamental mental processes and structures that underlie thinking, perception, memory, and decision-making in individuals.

Realistic Group Conflict Theory

A theory that explains how intergroup conflict can arise from competition between groups for limited resources.

Checkerboard Of Prejudice

A metaphorical description of how prejudiced attitudes and behaviors are distributed unevenly across a society, like a checkerboard, reflecting various degrees and types of prejudice.