Pete's Boats Has Beginning Long-Term Debt of $180 and Ending

question 72

Multiple Choice

Pete's Boats has beginning long-term debt of $180 and ending long-term debt of $210. The beginning and ending total debt balances are $340 and $360,respectively. The interest paid is $20. What is the amount of the cash flow to creditors?

• A) -$10
• B) $0
• C) $10
• D) $40
• E) $50

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Definitions:

Pleasure Principle

A concept in psychoanalytic theory referring to the drive toward immediate gratification of needs and desires.

Rationality

The quality of being based on or in accordance with reason or logic.

Logical

Relating to or involving clear, sound reasoning.

Personality

The characteristic set of behaviors, cognitions, and emotional patterns that evolve from biological and environmental factors.