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. The major difference between treating the extension of credit to a customer as accounts receivable and treating it as notes receivable b) 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 use transaction.
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. The major difference between treating the extension of credit to a customer as accounts receivable and treating it as notes receivable b) 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 use transaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
The major difference between treating the extension of credit to a customer as accounts receivable and treating it as notes receivable
b)
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 use transaction.
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