A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance.
In a statement of cash flows, what amount is included in investing activities for the above transaction?
a. Cash payment
b. Acquisition price
c. Zero
d. Mortgage amount
In a statement of cash flows, what amount is included in financing activities for the above transaction?
a. Cash payment
b. Acquisition price
c. Zero
d. Mortgage amount
a. Cash payment
Answer: C
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