An Increase in Long-Term Mortgage Payable Would Mean A(n)

question 43

Multiple Choice

An increase in long-term Mortgage Payable would mean a(n) :

• A)increase in cash flow from investing activities.
• B)decrease in cash flow from investing activities.
• C)increase in cash flow from financing activities.
• D)decrease in cash flow from financing activities.

---

Definitions:

Direct Method

In cash flow statement preparation, this approach lists the major categories of gross cash receipts and payments, offering more detail compared to the indirect method.

Operating Activities

Activities that relate to the primary operations of a company, including production, sales, and delivery of its products or services.

Income Statement

A document detailing a corporation's financial results for a given fiscal period, including income, costs, and net profit.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating capital structure.