A Company Settles a Long-Term Note Payable Plus Interest by Paying

question 89

Short Answer

A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for the interest. Under the direct method of reporting interest, the $5,440 would be listed as a(n) __________ activity.

---

Definitions:

Socialization

The process by which individuals learn and adopt the customs, values, and behaviors appropriate to their society or social group.

Values

Core beliefs or principles that guide and motivate attitudes and actions in individuals and organizations.

Norms

The informal understandings that govern the behaviors of members of a society or group, often guiding acceptable and expected actions.

Knowledge Management

The process of capturing, developing, sharing, and effectively using organizational knowledge.