Spanner Company Recorded the Following Events Last Year: on the Statement

question 66

Multiple Choice

Spanner Company recorded the following events last year: On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities.
-Based solely on the information above, the net cash provided by (used in) financing activities on the statement of cash flows would be:

• A) $(26,000)
• B) $(8,000)
• C) $89,000
• D) $935,000

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Definitions:

Long-Term Liability

Financial obligations or debts that are due for repayment in a period exceeding one year, impacting a company’s long-term financial stability.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable rate over time until its maturity.

Journal Entry

A record in accounting that documents a business transaction in the ledger, consisting of the debits and credits that impact various accounts.