Which of the following sections from the statement of cash flows would include the purchase of a building totally financed by a mortgage?
A) The purchase of a building totally financed by a mortgage would be included in the investing section.
B) The purchase of a building totally financed by a mortgage would be included in the operating section.
C) The purchase of a building totally financed by a mortgage would be included in the financing section.
D) The purchase of a building totally financed by a mortgage would not be included in any of the above-mentioned sections.

Question

Quizplus · Accepted Answer

The purchase of a building totally financed by a mortgage is a non-cash transaction and is typically disclosed in the notes to the financial statements, not in the cash flow statement sections.

Which of the Following Sections from the Statement of Cash