which section of the statement of cash flows is used to report the purchase of a building by issuing a 9-month note payable? A

Accounting Jan 14, 2021

which section of the statement of cash flows is used to report the purchase of a building by issuing a 9-month note payable? A. Schedule of noncash investing or financing activity. B. Operating activities. C. Investing activities D. Financing activities

Expert Solution

A) Schedule of non cash investing or financing .

Explanation :

It is a significant investing and financing activity that do not directly affect cash.

- Company doesn't generate any cash inflow or outflow from such activity .

Eg : purchase of machine by note payable or issue of stock to acquire land .

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