Which of the Following Would Result When a Company Borrows

question 105

Multiple Choice

Which of the following would result when a company borrows cash and signs a note payable that is due in two years?

• A)A noncurrent liability and an investing cash flow are created.
• B)A noncurrent liability and a financing cash flow are created.
• C)A current liability and an investing cash flow are created.
• D)A current liability and a financing cash flow are created.

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Definitions:

American Capitalist Society

A society characterized by a capitalistic economy, where private ownership, profit motive, and market competition are prevalent.

Ethnic Conspiracy

A belief or theory that a particular ethnic group is secretly working to achieve malignant goals.

Organized Crime

Structured groups engaged in criminal activities, often for profit, such as drug trafficking, extortion, and money laundering.

Burglary

The unlawful entry into a building with the intent to commit a crime, typically theft.