Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. (Choices may be used more than once.)
-issued long term mortgage to acquire land and a building

Question

Quizplus · Accepted Answer

Issuing a long-term mortgage to acquire land and a building is considered a noncash investing and financing activity, and it is typically disclosed in a separate schedule or note to the financial statements rather than in the main body of the statement of cash flows.

Use the Following Codes to Indicate How the Cash Flow