On August 1, 2014, Miles Company accepted from another company a one-year note receivable with a face amount of $4,000 and an interest rate of 8%.
What would be the amount of cash flow from operating activities (related to the note receivable) on the 2014 statement of cash flows?
A) $(4,000)
B) $187
C) $133
D) zero

Question

Quizplus · Accepted Answer

The cash flow from operating activities related to the note receivable in 2014 would be zero because the interest income is accrued but not received in cash until the note matures in 2015.

On August 1, 2014, Miles Company Accepted from Another Company