A Company's Balance Sheet Shows the Account,Notes Payable

question 162

Multiple Choice

A company's balance sheet shows the account,Notes Payable.This resulted from a loan made by the company's bank.If the end-of-year balance in the Notes Payable account exceeds the beginning-of-year balance by $5,000,this is shown on the cash flow statement as an

• A)inflow of cash of $5,000 in the Operating Activities category.
• B)outflow of cash of $5,000 in the Operating Activities category.
• C)inflow of cash of $5,000 in the Financing Activities category.
• D)outflow of cash of $5,000 in the Financing Activities category.

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Definitions:

Climate

The long-term pattern of weather in an area, typically averaged over a period of 30 years.

Dam

A structure built across a river or stream to control the flow of water.

Erosion

The process by which natural forces like water, wind, ice, and gravity wear away land surfaces, redistributing the materials.

Sediment

Particles of rock and organic material that are transported and deposited by wind, water, or ice.