Chester Company Began Year 2 with a Note Payable of $20,000

question 146

Multiple Choice

Chester Company began Year 2 with a note payable of $20,000 and interest payable of $800. During the year, the company accrued an additional $400 of interest expense, and paid off the note with interest. On the company's Year 2 statement of cash flows, cash flows for financing activities related to the note would be:

• A)$1,200 outflow
• B)$20,000 outflow
• C)$20,400 outflow
• D)$21,200 outflow

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Definitions:

Ingroup Bias

Ingroup bias is the tendency to favor one's own group over others, leading to preferential treatment for members of the in-group.

Vivid Cases

Highly memorable, emotionally charged examples or occurrences that stand out from the norm and have a lasting impact.

Ingroup Bias

The inclination to show preference and loyalty to those within one's own group rather than to individuals from different groups.

Other-race Effect

The tendency to more easily recognize faces of the race that one is most familiar with (often one’s own race) than those of other races.