[The following information applies to the questions displayed below.]

On August 1, Year 1, Jackson Company issued a one-year $80,000 face value interest-bearing note with a stated interest rate of 9% to Galaxy Bank. Jackson accrues interest expense on December 31, Year 1, its calendar year-end.

-What is the cash flow from financing activities that will be reported during the year ending December 31,Year 1?
A)$0
B)$80,000 inflow
C)$83,000 inflow
D)($87,200)outflow

Question

[The following information applies to the questions displayed below.]

On August 1, Year 1, Jackson Company issued a one-year $80,000 face value interest-bearing note with a stated interest rate of 9% to Galaxy Bank. Jackson accrues interest expense on December 31, Year 1, its calendar year-end.

-What is the cash flow from financing activities that will be reported during the year ending December 31,Year 1?
A)$0
B)$80,000 inflow
C)$83,000 inflow
D)($87,200)outflow

Quizplus · Accepted Answer

Cash flows reported as financing activities include cash receipts (inflows)from borrowing money.

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