A Decrease in Long-Term Notes Payable Would Mean

question 66

Multiple Choice

A decrease in long-term notes payable would mean:

• A) an increase of cash flow from investing activities.
• B) a decrease of cash flow from investing activities.
• C) an increase of cash flow from financing activities.
• D) a decrease of cash flow from financing activities.

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Definitions:

High-low Method

The high-low method is a way of estimating the fixed and variable components of a cost by using the highest and lowest activity levels and their corresponding costs.

Fixed Costs

Expenses that do not change with the level of goods or services produced by the business, such as rent and salaries.

Variable Costs

Costs that vary directly with the level of production or service volume.