Which of the Following Statements Is Incorrect

question 106

Multiple Choice

Which of the following statements is incorrect?

• A)It is common for companies to retire bonds and also issue new bonds in the same year as a way to replace higher interest rate debt with lower interest rate issuances.
• B)The cash payment of interest is reported as a cash flow from operating activities.
• C)Retiring bonds by paying cash creates a cash flow from investing activities when the issuing company buys the bonds back from investors.
• D)The cash payment to call an outstanding bond issue is reported as a cash flow from financing activities.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability of a set of data points from their mean.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a certain degree of confidence.

Millilitres

A metric unit of volume equal to one thousandth of a liter, commonly used in liquid measurement.

Classification

The action or process of categorizing something according to shared qualities or characteristics.