Aiken Corporation Acquired a Land Site with a Building by Issuing

question 76

Multiple Choice

Aiken Corporation acquired a land site with a building by issuing a 30-year mortgage payable.In Aiken's statement of cash flows,this transaction should be shown

• A) only as a cash flow from operating activity for the purchase of the land and building.
• B) only as a cash flow from financing activity for the issuance of the mortgage payable.
• C) in the schedule of noncash investing and financing transactions.
• D) as both a cash flow from investing activity and a cash flow from financing activity.

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Definitions:

Department Store

A retail establishment offering a wide range of consumer goods in different product categories known as "departments."

Compounded Monthly

Interest on an investment or loan is calculated and added to the principal amount at the end of each month.

Compounded Annually

An interest calculation method where interest is added to the principal sum once every year, resulting in interest earning interest.

Personal Loans

Unsecured loans given to individuals based on their credit history and income, rather than requiring collateral.