Indicate Whether Each of the Following Statements Is True or False

question 14

Short Answer

Indicate whether each of the following statements is true or false:
1. A cash payment for principal of a note payable is an asset use transaction
2. When a company issues a promissory note, it should recognize a cash flow from financing activities
3. The cash payment for interest on a note payable is reported on the statement of cash flows as a cash outflow from operating activities
4. A cash payment for principal of a note payable is reported on the statement of cash flows as a cash outflow from investing activities
5. The year-end adjusting entry to accrue interest on a note payable is an asset use transaction

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Definitions:

Normal Accident

A theory suggesting that in complex systems, accidents are inevitable due to the intricate interactions among components.

Risk Society

A risk society is a society defined by the way risk is distributed as a side effect of technology.

Technopoly

A form of social organization in which technology compels people to try to solve all problems using technical rather than moral criteria, even though technology is often the source of the problems.

Scientific Principles

Fundamental concepts or laws that serve as the foundation for scientific investigation and the acquisition of new knowledge.