U.S.GAAP requires the disclosure of the acquisition of a building by assuming a mortgage obligation
A)as both a financing activity and an operating activity.
B)as both an operating activity and an investing activity.
C)as both an investing activity and a financing activity.
D)in a separate schedule or note, but does not appear in the statement of cash flows as an operating activity, investing activity or a financing activity.
E)as both an investing activity and a exchange activity.

Question

Quizplus · Accepted Answer

The acquisition of a building by assuming a mortgage obligation is a non-cash financing and investing activity, which U.S. GAAP requires to be disclosed in a separate schedule or note, rather than in the statement of cash flows.

USGAAP Requires the Disclosure of the Acquisition of a Building