Equipment Is Acquired by Issuing a Note Payable for $57,000

question 21

Multiple Choice

Equipment is acquired by issuing a note payable for $57,000 and a down payment of $30,000. The statement of cash flows will report a:

• A)$57,000 inflow in the investing activities section.
• B)$57,000 cash inflow in the financing activities section.
• C)$30,000 cash outflow in the investing activities section.
• D)$30,000 inflow in the operating activities section.

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Definitions:

Econometric

Relating to econometrics, the branch of economics that applies statistical and mathematical methods to analyze economic data and test theories.

Prime Interest Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark in the economy.

Time Series

A sequence of data points recorded or measured at successive times, usually at uniform intervals.

High Temperature

A state of matter or environment that possesses a temperature significantly above the norm or average.