A company borrows $10,000 and signs a 90-day nontrade note payable.How would this event would be reflected in the statement of cash flows?
A)cash outflow from investing activities
B)cash inflow from investing activities
C)cash outflow from financing activities
D)cash inflow from financing activities

Question

Quizplus · Accepted Answer

Borrowing money through a note payable is considered a financing activity, and receiving the loan amount is a cash inflow.

A Company Borrows $10,000 and Signs a 90-Day Nontrade Note