Use the following information for questions 111 and 112.
A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance.
-In a statement of cash flows, what amount is included in financing activities for the above transaction?
A) Cash payment
B) Acquisition price
C) Zero
D) Mortgage amount

Question

Quizplus · Accepted Answer

The cash payment for the building is included in investing activities, not financing activities. The issuance of a mortgage note payable is a non-cash financing and investing activity and is disclosed separately from the statement of cash flows, thus not included in the total of financing activities.

Use the Following Information for Questions 111 and 112