If a firm buys 1 million worth of assets, but only pays 500k and records 500k as a payables account, how does this show up on cash flow statement. Is this considered an invetsing cash flow outflows of 1 million coupled with a financing cash inflow of 500k, or it will simply show up as 500k used in investing?
Investing CF = - 1 mill
Creditors = +0.5 mil
Equity/ Deb = +0.5 mil
Is this a question from the L2 curriculum?