Royer Corporation Engaged in This Transaction: Received Interest on an Investment

question 47

Multiple Choice

Royer Corporation engaged in this transaction: Received interest on an investment in a long-term note.
Indicate which section, if any, the above transaction would appear in, or relate to, on a statement of cash flows.

• A) Financing activities section
• B) Does not represent a cash flow
• C) Operating activities section
• D) Investing activities section

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Definitions:

Bank Loan

A sum of money borrowed from a bank that is expected to be repaid with interest.

Interest Due

The amount of interest payment that must be paid at a scheduled date for borrowed funds.

Payroll Register

A document that details the payments made to employees, including salaries, wages, deductions, and net pay.

Net Payroll

The total amount of wages paid to employees after the deduction of taxes and other withholdings.