A Company Reported That Its Bonds with a Par Value

question 123

Multiple Choice

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash,resulting in a loss of $3,000.The amount to be reported under cash flows from financing activities is:

• A)$3,000 outflow.
• B)$60,000 outflow.
• C)$57,000 outflow.
• D)Zero.This is an operating activity.
• E)Zero.This is an investing activity.

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Definitions:

Investment Analysts

Professionals who evaluate financial data, economic trends, and investment opportunities to provide recommendations.

Expectations

beliefs about the future, especially about how someone or something is going to behave or perform.

Stereotyping

The act of assigning a set of characteristics to a group of people based on oversimplifications or assumptions, often leading to misrepresentation.

Organizational Settings

refers to the work environment and conditions under which a company or institution operates, including its culture, structure, and processes.