Going along in the same p-test, and looking online I can’t seem to get a definitive definition for net borrowing. Is it simply increase in LT debt - increase in notes payable?
I’ve seen it written a couple of other ways.
i would change your - for a +
Usually given, but if not, figure out how much cash you raised in the period. In your example, I would add LT debt increase + increase in notes payable. If previous notes payable = $100 milllion and now = $110 million, it means you borrowed $10 million more, doesn’t it?
must be an error in the CFAI Mock then…
which one?
if it’s the 2011 one, then it’s probably a mistake because in my version it’s correct.
yeah the 2011 one pm question 51
I think of it as any new loan taken - any loan pmts made.