If $250000 of Bonds Are Issued During the Year but $130000

question 102

Multiple Choice

If $250000 of bonds are issued during the year but $130000 of old bonds are retired during the year the statement of cash flows will show a(n)

• A) net increase in cash of $120000.
• B) net decrease in cash of $120000.
• C) increase in cash of $250000 and a decrease in cash of $130000.
• D) net gain on retirement of bonds of $120000.

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Definitions:

Realty

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; also known as real estate.

Water Rights

Rights concerning the ownership and regulation of the usage of water from rivers, lakes, or underground sources.

Mineral Rights

The ownership rights of underground resources like oil, natural gas, metals, and minerals.

Airspace

The space above the ground in which aircraft can fly, also subject to property, safety, and national defense regulations.