Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. (Choices may be used more than once.)
-Issued a twenty-year mortgage note for cash.
A)Operating activity--add to net income
B)Operating activity--deduct from net income
C)Inflow from investing activity
D)Outflow from investing activity
E)Inflow from financing activity
F)Outflow from financing activity
G)Noncash investing and financing activity
H)Not reported on statement of cash flows

Question

Quizplus · Accepted Answer

Issuing a mortgage note would result in an inflow of cash, which is a financing activity and would be reported in the financing activities section of the statement of cash flows.

Use the Following Codes to Indicate How the Cash Flow