A mortgage issued in exchange for a building would be reported on the statement of cash flows in the
A)financing activity section.
B)noncash financing and investing section.
C)operating activity section.
D)investing activity section.

Question

Quizplus · Accepted Answer

Issuing a mortgage for a long term asset such as a building increases both accounts, but does not impact cash. Therefore, it is reported as a noncash investing and financing activity.

A Mortgage Issued in Exchange for a Building Would Be