On January 1, 2012, the Long-Term Liability Section of Eden

question 96

Multiple Choice

On January 1, 2012, the long-term liability section of Eden Company's balance sheet showed a balance of $35,000 in the bonds payable account.On December 31, 2012, the balance in that same account was $20,000.This change would appear on the statement of cash flows as

• A)an outflow of cash of $15,000 in the financing activities category.
• B)an inflow of cash of $15,000 in the financing activities category.
• C)an outflow of cash of $15,000 in the investing activities category.
• D)an inflow of cash of $15,000 in the investing activities category.

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Definitions:

Quantity Supplied

The quantity of a product or service that suppliers are ready and capable of selling at a specific price.

Inversely Related

A term used to describe a situation in which one variable increases as another variable decreases.

Doomsday Forecasts

Predictions suggesting catastrophic events leading to widespread destruction or significant societal collapse.

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