Arrow Printers Paid $2,000 Interest on Short-Term Notes Payable, $10,000

question 86

Multiple Choice

Arrow Printers paid $2,000 interest on short-term notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on its common stock. Arrow would report cash outflows from activities, as follows:

• A) Operating, $2,000; financing, $16,000.
• B) Operating, $0; financing, $18,000.
• C) Operating, $12,000; financing, $6,000.
• D) Operating, $18,000; financing, $0.

---

Definitions:

GLOBE Studies

A research project exploring how cultural variables affect leadership behavior, organizational practices, and the effectiveness of leadership styles across different cultures.

Cultural Norms

The shared expectations and rules that guide behavior of people within social groups.

Unequally Shared

Describes a situation where resources, responsibilities, or benefits are distributed disproportionately among members of a group.

Learned Beliefs

Convictions or opinions that are acquired through experiences, education, or social interactions.