Would Issuing a Mortgage to Purchase a Building Be Reported

question 134

Essay

Would issuing a mortgage to purchase a building be reported on the statement of cash flows? If so,where would it be reported? If not,why not?

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Definitions:

Preexisting Duty

An obligation or duty that already exists under contract law and does not constitute valid consideration for a new agreement.

Rescission

The act of canceling, voiding, or annulling a contract, returning the parties to their positions prior to the contract.

Usury

Charging an illegal rate of interest.

Lawful Maximum

The highest limit allowed by law, often referring to interest rates, fees, or other financial charges.