Is accounting the same as for notes payable to banks

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Reference no: EM131007412

FASB codification; locate and extract relevant information and cite authoritative support for a financial reporting issue; cash flow classification
"This one's got me stumped," you say to no one in particular. "First day on the job; I'd better get it right." It's the classification of notes payable in the statement of cash flows that has you in doubt. Having received an "A" in Intermediate Accounting, you know that a note payable representing a bank loan is a financing activity, but this one is a note payable to your employer's primary merchandise supplier. "I wonder if the accounting is the same."

Required:

1. Obtain the relevant authoritative literature on cash flow classification using the FASB's Codification Research System. You might gain access at the FASB website (www.fasb.org). What is the specific citation that specifies the classification of notes payable to suppliers?

2. Is accounting the same as for notes payable to banks? Explain.

3. Is accounting the same for both short-term and long-term notes payable to suppliers?

Reference no: EM131007412

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