A Company Borrows $10,000 and Signs a 90-Day Nontrade Note

question 132

Multiple Choice

A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method) , this event would be reflected as a(n)

• A) addition adjustment to net income in the cash flows from operating activities section.
• B) cash outflow from investing activities.
• C) cash inflow from investing activities.
• D) cash inflow from financing activities.

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Definitions:

Collective Societies

Cultures that prioritize the needs and goals of the group over the desires and success of individual members.

Tight Cultures

Societies or organizations that have strict norms and expectations with little tolerance for deviance.

Standards for Conformity

Guidelines or norms established by a society or group that individuals are expected to observe to be accepted or validated within that group.

Job Applicant

An individual who applies for a position within an organization.