The purchase of the machine for $30,000 will be recorded as noncash investing and financing activities.
In accounting, statement of cash-flow is a statement that calculate the amount of cash and cash equivalents that comes and leaves the company.
- The section of the statement of cash-flow are divided into the operating activities, investing activities and financing activities.
- The significant noncash financing and investing activities are reported on the company's income statement.
In conclusion, the Option D is correct because the purchase of the machine for $30,000 will be recorded as noncash investing and financing activities.
Missing word includes "Purchased a machine for $30,000, giving a long-term note in exchange."
Read more about noncash activities:
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