The purchase of machinery by issuing long-term notes payable should be reported as a
A. non-cash investing and financing activity
B. cash outflow in the operating activity
C. cash outflow in the investing activity
D. cash outflow in the financing activity
Answer: Option A
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
Join The Discussion