Anders Inc,reported That Its Bonds with a Par Value of $500,000

question 110

Multiple Choice

Anders Inc,reported that its bonds with a par value of $500,000 and a carrying value of $525,000 was retired for $545,000 resulting in a loss of $20,000.The amounts to be reported under the cash flows include:

• A) $45,000 net decrease in cash used for financing activities.
• B) $525,000 net decrease in cash used for investing activities.
• C) $20,000 increase in cash from operating activities;$545,000 decrease in cash used for investing activities.
• D) $20,000 increase in cash from operating activities;$545,000 decrease in cash used for financing activities.

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Definitions:

Vegetable Oils

Edible oils extracted from plants' seeds, fruits, or other parts, widely used in cooking and food preparation.

Hydrolysis

A chemical reaction involving the breakdown of a compound by water, leading to the separation of molecules.

Requires Water

Pertains to processes, organisms, or reactions that need water to function or occur.

Hydrolysis

A chemical process that splits molecules by adding water, commonly involved in breaking down polymers into monomers.