Indicate Whether Each of the Following Statements Is True or False

question 129

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) Loaning cash to another company is considered a financing activity on the statement of cash flows.
_____ b) The major difference between treating the extension of credit to a customer as accounts receivable and treating it as notes receivable is the existence of interest.
_____ c) In a promissory note, the payee issues the note to the maker.
_____ d) Interest rates are always stated on an annual basis, regardless of the length of the note.
_____ e) Accruing interest on a note receivable is considered an asset source transaction.

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Definitions:

Storming

Storming is a phase in group development where members experience conflict and competition as they start to express individual ideas and differences following initial group formation.

Norming

A stage in team development where members establish norms and cohesion, leading to improved collaboration and performance.

Performing

The stage in a team or organizational development where the group effectively works towards achieving its goals with high levels of productivity.

Individual Members' Capabilities

Refers to the skills, knowledge, and abilities possessed by each person within a group or organization.