Asked by
Wardah Alsultan
on Nov 13, 2024
Verified
Cash receipts received from the issuance of a mortgage notes payable would be classified as a (n)
A) investing activity
B) operating activity
C) noncash investing and financing activity
D) financing activity
Mortgage Notes Payable
A liability represented by a legal document indicating the amount owed on a mortgage, including terms for repayment and interest rates.
Financing Activity
Transactions related to raising capital and repaying investors, including issuing equity, taking out loans, and distributing dividends.
Cash Receipts
The total amount of money received by a business during a specific period, including cash sales, collected receivables, and any other cash inflows.
- Discern the different categories of cash flow activities (operating, investing, and financing) and the corresponding specific transactions within each.
- Recognize the transactions that contribute to a rise in cash versus those that lead to a reduction in cash.
Verified Answer
IT
Learning Objectives
- Discern the different categories of cash flow activities (operating, investing, and financing) and the corresponding specific transactions within each.
- Recognize the transactions that contribute to a rise in cash versus those that lead to a reduction in cash.