The purchase of machinery by issuing long-term notes payable should be reported as a —

CS Executive · Cost and Management Accounting · PYQS · June 2016
The purchase of machinery by issuing long-term notes payable should be reported as a —
(A) Non-cash investing and financing activity
(B) Cash outflow in the operating activity
(C) Cash outflow in the investing activity
(D) Cash outflow in the financing activity.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Cash Flow Statement

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