A Bond Differs from Term in Loans in That

question 67

Multiple Choice

A bond differs from term in loans in that

• A)a bond issue is generally advertised.
• B)a bond is sold to many investors.
• C)a bond is offered to the public.
• D)All of the above.
• E)None of the above.

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Definitions:

Direct Method

A way to present the cash flow from operating activities by listing major operating cash receipts and payments, making it easier to understand than the indirect method.

Operating Activities

Day-to-day actions that relate directly to the production, sale, and delivery of a company’s products and services.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions, deferred incomes, and the change in working capital.