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:

Omnibus Budget Reconciliation Act

Legislation used in the United States to implement budgetary adjustments, often including multiple subject areas.

Nursing Home Reform Act

Legislation aiming to improve the quality of care in long-term residential facilities by setting federal standards for how care should be provided to residents.

Resident Assessment Instrument

A standardized approach used in healthcare settings to assess and plan care for residents, particularly in long-term care facilities.

Universal Health Care Policy

A health care system in which all residents of a particular country or region are assured access to health care services, often through government support.