Question
If $2,500,000 of new notes payable are issued for cash during the year and $4,000,000 of notes payable are paid during the year, how should
If $2,500,000 of new notes payable are issued for cash during the year and $4,000,000 of notes payable are paid during the year, how should this be reported in the statement of cash flows?
| A. | Cash inflow of $2,500,000 and a cash outflow of $4,000,000 in the financing activities section. | |
| B. | Net cash outflow of $1,500,000 in the financing activities section. | |
| C. | Cash inflow of $2,500,000 and a cash outflow of $4,000,000 in the investing activities section. | |
| D. | Net cash outflow of $1,500,000 in the investing activities section. |
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Auditing Practices A Complete Guide
Authors: Gerardus Blokdyk
2023rd Edition
1038804450, 978-1038804457
