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

question 60

Multiple Choice

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) :

• A)operating activity.
• B)financing activity.
• C)investing activity.
• D)separate disclosure only.

---

Definitions:

Gender Inequality

The societal imbalance where rights, opportunities, and status are unequally distributed between genders, often leading to disadvantages for women and gender non-conforming individuals.

George Murdock

An American anthropologist known for his work on family and kinship structures, and for defining the concept of the nuclear family.

Friends With Benefits

Involves occasional sexual relations with a friend, without commitment or romantic feelings for one another.

Romantically Involved

Engaged in a relationship that involves love and affection between partners.