Which of the Following Would Result When a Company Borrows

question 4

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.The note is noncurrent because it is due in two years.The cash flow is created from borrowing money, and categorized as a financing cash flow.

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