Indicate Whether Each of the Following Statements Is True or False

Short Answer

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 use transaction.