A company purchased a parcel of land using a long- term note payable. Using the direct method, where is this transaction reported on the statement of cash flows? O A. investing activities OB. financing activities OC. operating activities OD. noncash investing and financing activities

A company purchased a parcel of land using a long- term note payable. Using the direct method, where is this transaction reported on the statement of cash flows? O A. investing activities OB. financing activities OC. operating activities OD. noncash investing and financing activities

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter23: Statement Of Cash Flows

Section: Chapter Questions

Problem 5MC

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Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

A company purchased a parcel of land using a long- term note payable. Using the direct method, where is this transaction reported on the statement of cash flows?
.....
OA. investing activities
O B. financing activities
O C. operating activities
OD. noncash investing and financing activities
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