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Katena32 [7]
3 years ago
12

Cash receipts received from the issuance of a mortgage notes payable would be classified as a(n) a. noncash investing and financ

ing activity. b. operating activity. c. investing activity. d. financing activity.
Business
2 answers:
valentina_108 [34]3 years ago
6 0

Answer:

It is financing activity (D)

Explanation:

Option (A) False. Example of non-cash item iclude profit on disposal of asset.

Option(B) False.Examples of operating activities include increase/decrease in receivables,payables e.t.c

Option (C) False. Examples of investing activity include purchase or disposal of non-current assets.

Option (D) True. Issuance of mortgage notes will generate additional finance for the company for relevant investment.

lara31 [8.8K]3 years ago
4 0

Answer:

d. financing activity.

Explanation:

According to my research on the issuance of mortgage notes, I can say that the cash reciepts described within the question would be classified as a financing activity. a Financing Activity is defined as "transactions or business events that affect long-term liabilities and equity". Based on this information is why the cash receipts are classified as Financing Activities.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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Explanation:

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Sheridan Company began the year with retained earnings of $659000. During the year, the company recorded revenues of $600000, ex
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