Answer:
d. financing activity.
Explanation:
According to my research on the issuance of mortgage notes, I can say that the cash reciepts described within the question would be classified as a financing activity. a Financing Activity is defined as "transactions or business events that affect long-term liabilities and equity". Based on this information is why the cash receipts are classified as Financing Activities.
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Answer:
It is financing activity (D)
Explanation:
Option (A) False. Example of non-cash item iclude profit on disposal of asset.
Option(B) False.Examples of operating activities include increase/decrease in receivables,payables e.t.c
Option (C) False. Examples of investing activity include purchase or disposal of non-current assets.
Option (D) True. Issuance of mortgage notes will generate additional finance for the company for relevant investment.
