Which of the following would result when a company lends cash to a customer in exchange for a ten-month note receivable?
A)A noncurrent asset and an investing cash flow are created.
B)A noncurrent asset and a financing cash flow are created.
C)A current asset and a financing cash flow are created.
D)A current asset and an investing cash flow are created.

Question

Quizplus · Accepted Answer

Lending cash to a customer in exchange for a ten-month note receivable creates a current asset (since it's expected to be converted into cash within a year) and is considered an investing activity, as it involves providing resources for the purpose of generating future income.

Which of the Following Would Result When a Company Lends