The appropriate section in the statement of cash flows for reporting the cash received from the issuance of a long-term note payable is:Select one:A. Financing activities.B. This is not reported on the statement of cash flows.C. Operating activities.D. Investing activities.E. Schedule of noncash investing or financing activity.

Question

09-08-2019
Business

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The appropriate section in the statement of cash flows for reporting the cash received from the issuance of a long-term note payable is:Select one:A. Financing activities.B. This is not reported on the statement of cash flows.C. Operating activities.D. Investing activities.E. Schedule of noncash investing or financing activity.

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Nyctalus Nyctalus · Answer 1 · 2019-08-16T11:35:46+02:00

Answer: Financing activities

Explanation: Financing activities can be defined as those activities which affect equity or long term liabilities of a company. These transaction generally relates to issuance or financing of debt and equity.

In the given case, issuance of long term note payable will result in inflow of cash for financing company operations and also it will result in increase in long term liabilities.

So, we can conclude that option A is correct.