The Amortization of Bond Discount Related to Long-Term Debt Should

question 46

Multiple Choice

The amortization of bond discount related to long-term debt should be presented in a statement of cash flows prepared using the indirect method as a(n)

• A) inflow and outflow of cash.
• B) outflow of cash.
• C) deduction from net income in the adjustments to reconcile net income to cash from operating activities.
• D) addition to net income in the adjustments to reconcile net income to cash from operating activities.

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Definitions:

Personality Traits

Enduring characteristics or qualities of an individual’s behavior, thought, and emotion that are consistent across different situations.

Behavioural Characteristics

Traits or actions of an individual that identify and distinguish their behavior.

Psychological Contract

An unwritten agreement between an employer and an employee that outlines mutual expectations, obligations, and perceptions.

Inducements

Incentives or rewards offered to motivate or encourage specific actions or behaviors.