Business, 19.08.2020 23:01 jagger68

On January 1, Year 1, Carlyle Corporation issued a 5-year term note. The note requires an annual cash payment on December 31 of each year. The payment includes a principal repayment and interest. Indicate whether each of the following statements is true or false. a. Issuing the note will increase assets and liabilities.
b. The first payment on the note will reduce liabilities and assets, but will not affect stockholders' equity.
c. The second payment on the note will include higher interest expense than did the first payment.
d. Each payment on the note includes a cash flow from operating activities and a cash flow from financing activities.
e. The amount of the principal repayment will increase with each succeeding payment.

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On January 1, Year 1, Carlyle Corporation issued a 5-year term note. The note requires an annual cas...

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