The Acquisition of a Building by Issuing a Mortgage Note

question 55

True/False

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

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Definitions:

Gross Returns

The total amount of financial return on an investment before any deductions, such as expenses or taxes.

Rebuttable Presumption

A legal principle assuming certain facts are true until proven otherwise.

Partnership Funds

Resources or capital pooled together by partners in a partnership for the purpose of carrying out the partnership's business activities.

Faithful Service

The loyalty and diligence an employee is expected to show towards their employer or organization.