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Which cashflow activity does the issuance of a note payable classify as?

User Seymar
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1 Answer

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Final answer:

The issuance of a note payable is classified as a financing activity.

Step-by-step explanation:

The issuance of a note payable is classified as a financing activity in the cash flow statement.

This is because the issuance of a note payable represents a borrowing of funds for the business.

Financing activities involve obtaining or repaying funds from lenders or investors, and the issuance of a note payable falls under this category.

User Hyomin Kim
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