Which of the following would result when a company borrows cash and signs a note payable due in two years?
A)A noncurrent liability and an investing cash flow are created.
B)A noncurrent liability and a financing cash flow are created.
C)A current liability and an investing cash flow are created.
D)A current liability and a financing cash flow are created.

Question

Quizplus · Accepted Answer

The note is noncurrent because it is due in two years. The cash flow is created from borrowing money, and categorized as a financing cash flow.

Which of the Following Would Result When a Company Borrows