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:

Classical Conditioning

The method of teaching through the repeated coupling of two stimuli; the response, initially caused by the second stimulus, is later caused by only the first stimulus.

Token Economy

A behavioral modification method that uses tokens as a form of reinforcement for exhibiting desirable behaviors, which can be exchanged for privileges or treats.

Lost-time Injuries

Work-related injuries that result in an employee being unable to work for a period of time beyond the day of the injury.

Mining Safety

Practices, procedures, and regulations designed to minimize health and safety risks to workers in the mining industry.