The Purchase of an Office Building by Issuing Long-Term Notes

Multiple Choice

The purchase of an office building by issuing long-term notes payable should be reported as a:

A) cash outflow in the financing section of the statement of cash flows.
B) cash outflow in the investing section of the statement of cash flows.
C) cash outflow in the operating section of the statement of cash flows.
D) noncash investing and financing activity.