CMA Study Group

​Kelli Company acquired land by assuming a mortgage for the full acquisition cost. This transaction should be disclosed on Kelli's Statement of Cash Flow as a(n)

a. financing activity.
b. investing activity.
c. operating activity.
d. non-cash financing and investing activity.

(CMA Exam Part 1)

------------------------------
Morgan Del Rio
Marketing and Social Media Manager
IMA
morgan.delrio@...
------------------------------

Answer  D 

As the land is acquired assuming the mortgage. no cash is involved in the transaction for it to qualify as an investing or financing activity. 


Thank You

------------------------------
Safa Firfire
Kuwait
------------------------------

Original Message:
Sent: 09-01-2017 12:57 PM
From: Morgan Greenleaf
Subject: CMA Pop Quiz - Q195

​Kelli Company acquired land by assuming a mortgage for the full acquisition cost. This transaction should be disclosed on Kelli's Statement of Cash Flow as a(n)

a. financing activity.
b. investing activity.
c. operating activity.
d. non-cash financing and investing activity.

(CMA Exam Part 1)

------------------------------
Morgan Del Rio
Marketing and Social Media Manager
IMA
<maskemail>morgan.delrio@...</maskemail>
------------------------------