How Do the Issuance of a Note Payable,accrual of Interest,and

question 1

Essay

How do the issuance of a note payable,accrual of interest,and repayment of the note's principal and interest each affect a company's Statement of Cash Flows?

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Definitions:

Accounting Profit

The difference between total revenue and explicit costs.

Economic Profit

The difference between total revenue and total costs, including explicit and implicit costs.

Implicit Costs

The opportunity costs of using resources that a firm already owns to produce goods or services instead of earning money from these resources elsewhere.

Accounting Costs

Expenses recognized in a company's financial statements or accounts, representing outlays related to its operations and maintenance.