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The repayment of a note payable would be classified as a(n):

a) Investing activity on a cash flow statement
b) Current asset on the balance sheet
c) Operating activity on a cash flow statement
d) Financing activity on a cash flow statement

User Andriod
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Final answer:

The repayment of a note payable is classified as a financing activity on a cash flow statement, which reflects cash outflows associated with the management of the company's capital structure.

Step-by-step explanation:

The repayment of a note payable would be classified as a d) Financing activity on a cash flow statement. This classification is consistent with the purpose of the cash flow statement, which is to provide information on a company’s cash inflows and outflows over a certain period. The repayment of debt, including notes payable, often represents a cash outflow and is directly related to the financing activities of a company since it pertains to the company’s management of its capital structure.

Looking at the provided contexts regarding trade of goods and services, financial capital markets, loans, and the primary and secondary loan markets underscores the economic reality that the movement of capital, whether for trade or repayment, has a fundamental impact on financial transactions and statements.

User Krystle
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