A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is a. $0; this is an investing activity. b. $0; this is an operating activity. c. $73,440. d. $68,000. e. $5,440.
A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is a. $0; this is an investing activity. b. $0; this is an operating activity. c. $73,440. d. $68,000. e. $5,440.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 12MC: Which of the following accounts are used when a short-term note payable with 5% interest is honored...
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A company settles a long-term note payable plus interest by
paying $68,000 cash toward the principal amount and
$5,440 cash for interest. The amount reported as a use of
cash under cash flows from financing activities is
a. $0; this is an investing activity.
b. $0; this is an operating activity.
c. $73,440.
d. $68,000.
e. $5,440.
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