Answer the following statements true (T) or false (F)
1. Nevada Sales purchased some equipment for $12,000 by issuing a five-year note payable. This will appear in the non-cash investing and financing activities section of the statement of cash flows.
2. Arizona Company plans to purchase a property to build its corporate headquarters. An investor is willing to exchange land with a market value of $500,000 for common stock. This transaction would be shown in the financing activities section of the statement of cash flows.
3. The non-cash investing and financing activities section of the statement of cash flows appears as a separate schedule of the statement of cash flows or in the notes to the financial statements.
4. Companies sometimes obtain financing and do not receive cash. Although such transactions do not directly involve cash, they still must be reported in the financing section of the statement of cash flows.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
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