The Acquisition of a Building by Issuing a Mortgage Payable

question 62

True/False

The acquisition of a building by issuing a mortgage payable would be considered an investing and financing activity that did not affect cash and would be reported in the notes to the financial statements.

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Definitions:

Earth's History

A chronological description of the physical and biological events that have occurred on Earth from its formation to the present.

Precambrian

A very long interval of geologic time, from the formation of the solid earth to the beginning of the Paleozoic; it is equivalent to 90% of geologic time.

Precambrian

Referring to the eon that constitutes the earliest part of Earth's history, which ended approximately 542 million years ago.

Geologic Time

The exceptionally long period of time dealt with by geology; the time extending from the formation of Earth to the beginning of written history.