Indicate whether each of the following statements is true or false:
1. A cash payment for principal of a note payable is an asset use transaction
2. When a company issues a promissory note, it should recognize a cash flow from financing activities
3. The cash payment for interest on a note payable is reported on the statement of cash flows as a cash outflow from operating activities
4. A cash payment for principal of a note payable is reported on the statement of cash flows as a cash outflow from investing activities
5. The year-end adjusting entry to accrue interest on a note payable is an asset use transaction

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The Answer of Indicate whether each of the following statements is true or false:
1. A cash payment for principal of a note payable is an asset use transaction
2. When a company issues a promissory note, it should recognize a cash flow from financing activities
3. The cash payment for interest on a note payable is reported on the statement of cash flows as a cash outflow from operating activities
4. A cash payment for principal of a note payable is reported on the statement of cash flows as a cash outflow from investing activities
5. The year-end adjusting entry to accrue interest on a note payable is an asset use transaction

Indicate Whether Each of the Following Statements Is True or False