[The Following Information Applies to the Questions Displayed Below

question 48

Multiple Choice

[The following information applies to the questions displayed below.]

Riley Company borrowed $36,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 7% annual interest rate. Riley earned cash revenues of $1,700 during Year 1 and $1,400 during Year 2. Assume no other transactions.

-Based on this information alone,what amount of cash flow from operating activities would appear on the Year 2 statement of cash flows?

• A)$770 inflow
• B)$1,400 inflow
• C)$38,520 outflow
• D)$1,120 outflow

---

Definitions:

Foreseeable Harm

Damage or injury that a reasonable person should have anticipated as a likely outcome of their actions.

Intoxicated Viewer

A person under the influence of alcohol or drugs while watching media, affecting their perception and interpretation.

Exculpatory Clause

A clause in a contract or trust instrument that excuses a party from some duty.

Negligence Liability

Legal responsibility for harm caused by failing to act as a reasonable person would under similar circumstances.