Indicate Whether Each of the Following Statements Is True or False

Indicate whether each of the following statements is true or false.
_____ a) Loaning cash to another company is considered a financing activity on the statement of cash flows.
_____ b) The major difference between treating the extension of credit to a customer as accounts receivable and treating it as notes receivable is the existence of interest.
_____ c) In a promissory note, the payee issues the note to the maker.
_____ d) Interest rates are always stated on an annual basis, regardless of the length of the note.
_____ e) Accruing interest on a note receivable is considered an asset source transaction.

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a) False b) True c) False d) True e) Tru...

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