Asked by Simply Eleni on Jun 29, 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 involving the purchase and sale of long-term assets and other investments, reflected in a company's cash flow statement.
Six-Month Note
A short-term financial instrument that matures or is due for payment within six months from the date it was issued.
- Identify the differences in cash flows generated through operating, investing, and financing activities.
Verified Answer
DN
David NorteyJul 04, 2024
Final Answer :
False
Explanation :
Purchasing equipment by issuing a note is a non-cash transaction and should not be shown 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
- Identify the differences in cash flows generated through operating, investing, and financing activities.