Which of the following would result when a company borrows cash and signs a note payable that is due in two years?

Question

Quizplus · Accepted Answer

When a company borrows cash and signs a note payable that is due in two years, it creates a noncurrent liability because the note is due in more than one year. This borrowing is also categorized as a financing cash flow because it is related to the company's financing activities. Therefore, choice B is the correct answer.

Which of the Following Would Result When a Company Borrows