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The purchase of a long-term asset using a long-term note payable is an example of a...

The purchase of a long-term asset using a long-term note payable is an example of a noncash investing and financing activity, which should be disclosed in a note or separate schedule.

True or False

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Answer #1
TRUE
The purchase of a long-term asset using a long-term note payable is an example of a noncash investing and financing activity, which should be disclosed in a note or separate schedule.
The purchase of a long-term asset using a long-term note payable does not affect cash and is a noncash investing and financing activity.
Noncash investing and financing activity should be presented in a schedule below the statement of cash flows or in notes to financial statements.
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