A company exchanges equipment worth \$250,000 for a long-term note payable. How should this transaction be disclosed and what is its impact on financial analysis?

• A. Included in the operating section; it impacts cash flow analysis.
• B. Included in the investing section; it impacts asset valuation.
• C. Disclosed in the financing section; it impacts equity analysis.
• D. Disclosed at the bottom of the statement of cash flows; it impacts the company's liabilities and asset management.

Answer: (D)