A Company Prepared the Following Journal Entry: Which of the Following

question 113

Multiple Choice

A company prepared the following journal entry: Which of the following statements is correct?
Bonds payable
Premium on bonds payable
Loss on bond retirement
Cash

• A) The book value of the bonds was less than the cash payment.
• B) The increase in stockholders' equity equals the loss on the bond retirement.
• C)The decrease in assets is greater than the decrease in liabilities and, as a result, stockholders' equity decreases.
• D)The net cash flow from financing activities decreases by the book value of the bonds payable.

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Definitions:

Response Substitution

A phenomenon whereby one inappropriate behavior is suppressed and another inappropriate behavior occurs.

Suppression

The act of stopping or inhibiting something from occurring, often referring to behaviors, thoughts, or emotional expressions.

Throwing Furniture

An example of an extreme behavioral response, often used in discussions about managing challenging behaviors in environments such as classrooms or therapeutic settings.

Response Cost

A type of behavior modification technique that involves removing a reward or positive reinforcement to decrease unwanted behaviors.