[The Following Information Applies to the Questions Displayed Below

question 85

Multiple Choice

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

Madison Company issued an interest-bearing note payable with a face value of $24,000 and a stated interest rate of 8% to Metropolitan Bank on August 1, Year 1. The note carried a one-year term.

-Based on this information alone,what is the amount of cash flow from operating activities reported on Madison's Year 1 statement of cash flows?

• A)$1,920
• B)$800
• C)$24,000
• D)$-0-

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Definitions:

Spending Variances

The differences between the budgeted or planned amounts of spending and the actual amounts spent.

Customers Served

The total number of customers who receive service or products from a business within a given time period.

Revenue

The total amount of income generated from the sale of goods or services before any expenses are subtracted.

Spending Variances

Differences between the actual spending and the budgeted or planned spending in a given period, often analyzed in cost and managerial accounting.