In Preparing a Statement of Cash Flows, the Conversion of Bonds

question 67

Multiple Choice

In preparing a statement of cash flows, the conversion of bonds into common shares will be reported in the

• A)financing activities section.
• B)notes to the financial statements.
• C)investing activities section.
• D)shareholders' equity section.

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Definitions:

Actual Authority

Authority given to an agent expressly or by implication.

Estoppel

An equitable remedy that stops a party from trying to establish a position or deny something that, if allowed, would create an injustice.

Ratification

The action of officially approving or confirming an agreement or act, making it valid.

Apparent Authority

Authority as suggested to a third party by the conduct of a principal; may exist even when there is no actual authority.