How Will a Company Classify 'Proceeds Received from the Issuance

question 73

Multiple Choice

How will a company classify 'proceeds received from the issuance of long-term bonds' on its statement of cash flows?

• A)Cash provided from operations
• B)Cash used in operations
• C)Cash provided from investing activities
• D)Cash provided from financing activities

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Definitions:

False Pretenses

A legal term referring to the act of intentionally misrepresenting the truth to obtain property or money from another.

Misdemeanors

Less serious criminal offenses that are punishable by fines or imprisonment for a period of less than one year.

Petty Offenses

Relate to minor legal violations that typically result in a small fine or other minor penalties.

Stock Option Backdating

The practice of setting the grant date of stock options to an earlier time than their actual issuance date, often to benefit the option recipient financially.