A Company Reported That Its Bonds with a Face Value

question 203

Multiple Choice

A company reported that its bonds with a face value of $50,000 and a carrying value of $53,000 are retired for $56,000 cash.The amount to be reported under cash flows from financing activities is:

• A) ($53,000).
• B) ($3,000).
• C) ($56,000)
• D) $0; this is an operating activity.

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Definitions:

Transformational

Related to a process of profound change in form, structure, or appearance, often used in contexts of transformational leadership or transformational grammar in linguistics.

Perceptual

pertaining to or involving the perception of the environment through the senses, including the process of recognizing, organizing, and interpreting sensory information.

Stimulus

A Stimulus is any event or situation that evokes a response from an organism in a sensory way or through psychological interaction.