Paige Noted That She Disbursed $7,847 in Payments for Operations

question 94

Multiple Choice

Paige noted that she disbursed $7,847 in payments for operations in her travel agency and received $7,162 in cash receipts for services rendered. She had no cash receipts or disbursements from investments or financing activities. Thus, Paige had a

• A) positive disbursement.
• B) negative cash flow.
• C) bad debt allowance.
• D) tax credit payment.

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Definitions:

Fair Value Hedge

A risk management strategy that uses financial instruments to mitigate the risk of changes in the fair value of an asset or liability.

Mexican Pesos

The currency of Mexico, abbreviated as MXN.

Foreign Exchange Gain

A profit arising from the increase in value of one currency against another in which a company holds assets or liabilities.

Non-Interest-Bearing Note

A financial instrument that does not accrue interest over its life, promising to pay the principal amount at maturity.