Cash receipts received from the issuance of a mortgage notes payable would be classified as a(n)
a. either financing or investing activities.
b. operating activities.
c. investing activities.
d. financing activities.
The Correct Answer for the given question is option d. financing activities.
Cash receipts received from the issuance of a mortgage notes payable would be classified as a financing activities because it records the transactions which deals with amount raised through issue of any instruments. The cash received is used to finance the purchase of the property. The mortgage note is a loan that is secured by the property, and the cash received from the sale of the note is used to fund the purchase of the property.