If $200,000 of New Bonds Are Issued During the Year

question 75

Multiple Choice

If $200,000 of new bonds are issued during the year and $120,000 of old bonds are retired during the year, the financing activities section of the statement of cash flows will show

• A)a net increase in cash of $80,000.
• B)a net decrease in cash of $80,000.
• C)an increase in cash of $200,000 and a decrease in cash of $120,000.
• D)a net gain on retirement of bonds of $80,000.

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Definitions:

Binding Decision

A final and enforceable ruling or judgment made by an authority that must be followed.

Neutral Third Party

An impartial entity involved in a dispute or negotiation to facilitate a resolution or agreement without any bias towards the parties involved.

Bargaining Zone

The range within which an agreement is satisfactory to both parties involved in a negotiation process.

Two-party Negotiation

A process where two parties discuss potential compromises to resolve a dispute or reach an agreement.