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.

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Definitions:

Information-Processing Styles

The different ways individuals process and interpret information, reflecting variations in thinking and learning.

Nearsighted and Farsighted

Describes perspectives where nearsighted is focused on immediate details and farsighted on long-term outcomes and contexts.

Eliminate Uncertainty

Eliminate uncertainty involves taking steps to remove doubts and unpredictability in situations, often through gathering information, planning, and risk management.

Group Decision Making

A process where members of a group collectively analyze problems and look for solutions, aiming to reach a consensus that reflects the input and perspective of the entire group.