Which of the Following Would Result When a Company Lends

question 45

Multiple Choice

Which of the following would result when a company lends cash to a franchisee in exchange for a ten-month note receivable?

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

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Definitions:

Accept The Offer

The act of agreeing to the terms proposed in an offer, thus forming a contractual agreement.

Reject The Offer

The act of declining a proposal or invitation, typically in negotiations, employment, or contractual agreements.

Standard Deviation

A measure of the dispersion or variation in a set of numerical data, indicating how spread out the values are from the mean.

Expected Return

The average of all possible returns for an investment, weighted by their likelihood of occurrence.