Two Years Ago, Your Company Bought $40,000 in Bonds from Another

question 5

Multiple Choice

Two years ago, your company bought $40,000 in bonds from another company. This month, it sold half of those bonds for $20,640 and lent $1,000 to an employee with a promissory note. On the statement of cash flows for this accounting period, your company would report a net cash:

• A) outflow of $19,640 from investing activities.
• B) inflow of $19,640 from investing activities.
• C) cash inflow of $20,640 from investing activities.
• D) cash outflow of $20,640 from investing activities.

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Definitions:

Single Peaked

Refers to a preference or utility pattern where an individual's satisfaction increases up to a certain point, after which it starts to decrease, creating a peak at the optimum point.

Public Goods

Goods that are characterized by being non-excludable and non-rivalrous, meaning that no one can be excluded from their use and one person's use does not diminish another's.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that one individual's consumption of the good does not reduce its availability to others and cannot be confined to paying customers only.

Private Goods

Describes products that are excludable and rivalrous, meaning their use by one individual prevents use by another.