Asked by Landon Busse on May 31, 2024
Verified
Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section.
Investing Activities
Financial transactions related to the acquisition or sale of long-term assets and investments, part of a company's cash flow statement.
Statement Of Cash Flows
A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.
- Comprehend the declaration of cash movements associated with investing endeavors.
Verified Answer
LS
Larissa SpitzigJun 07, 2024
Final Answer :
False
Explanation :
Purchasing equipment by issuing a six-month note is a non-cash transaction and should not be reported in the cash flows from investing activities section of the statement of cash flows. It is typically disclosed in the notes to the financial statements.
Learning Objectives
- Comprehend the declaration of cash movements associated with investing endeavors.
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