During the Year, a fiRm Paid $25,000 in Interest Expense

question 379

Multiple Choice

During the year, a firm paid $25,000 in interest expense and its long-term debt decreased from $350,000 to $250,000. What is the firm's cash flow to creditors?

• A) -$75,000
• B) -$25,000
• C) $25,000
• D) $75,000
• E) $125,000

---

Definitions:

Family Therapists

Professionals specialized in treating psychological, emotional, and relational issues within the context of the family system.

Desensitization Techniques

Therapeutic methods used to reduce phobic responses or anxiety through gradual exposure to the feared object or situation.

Therapeutic Alliance

The collaborative relationship between a client and their therapist, which is often a predictor of outcomes in psychotherapy.

Transference

The redirection of feelings and desires, especially those unconsciously retained from childhood, onto a substitute, notably in a psychoanalytic context.