The issuance of notes payable for borrowing is classified in the statement of cash flows as a(n): Multiple Choice Operating acti

Question

Dmitry_Shevchenko [17]

2 years ago

14

The issuance of notes payable for borrowing is classified in the statement of cash flows as a(n): Multiple Choice Operating acti

vity. Investing activity. Financing activity. Noncash activity.

Business

1 answer:

Harman [31] · Answer 1 · 2022-12-02T09:56:31+03:00

The transaction of the issuance of notes payable for borrowing will be classified in cash flows statement as a Financing activities.

Under the statement of Cash-flow, the financing activities section records all transactions that involves long-term liabilities, owner's equity etc.

Hence, the transaction of the issuance of notes payable for borrowing will be classified in cash flows statement as a Financing activities.

Therefore, the Option C is correct.