The issuance of notes payable for borrowing is classified in the statement of cash flows as a(n): Multiple Choice Operating activity. Investing activity. Financing activity. Noncash activity.

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03-12-2021
Business

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The issuance of notes payable for borrowing is classified in the statement of cash flows as a(n): Multiple Choice Operating activity. Investing activity. Financing activity. Noncash activity.

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Tundexi Tundexi · Answer 1 · 2021-12-10T12:46:40+01:00

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.