Which of the Following Would Result When a Company Lends

question 97

Multiple Choice

Which of the following would result when a company lends cash to a franchisee in exchange for a ten-month note receivable?

• A)A noncurrent asset and an investing cash flow are created.
• B)A noncurrent asset and a financing cash flow are created.
• C)A current asset and a financing cash flow are created.
• D)A current asset and an investing cash flow are createD.A ten-month note receivable is classified as a current asset.Investing cash flows include lending cash to others.

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Definitions:

Systems Approach

A holistic perspective that examines the interrelations and interactions within and among components of a complete system.

Behavioral Approach

A perspective in psychology and management focusing on understanding human behavior through observation and empirical data, often emphasizing the environment's role on behavior.

Multivariate Analysis

A set of statistical techniques used for analysis of data that involves multiple variables to understand relationships and patterns.

Contingency Approach

A management theory that suggests the most appropriate management style or approach depends on the specific aspects of the situation at hand.