A Company Should Add Back Bond Premium Amortization to Net

question 56

True/False

A company should add back bond premium amortization to net income to arrive at net cash flow from operating activities.

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Definitions:

Self-Actualization

In Abraham H. Maslow’s theory, an actualization of one’s potential arrived at by satisfaction of a hierarchy of needs visualized as a pyramid. At the base are biological or survival needs; the next step up is the need for friendship and affiliation; finally, there is an assurance of self-worth, which comes from giving and receiving love and from an internalized sense of self-esteem. In Maslow’s view, abnormal or dysfunctional behaviour results from a failure to attain the self-esteem necessary to achieve self-actualization.

Abraham Maslow

A psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Hierarchy of Needs

A theory in psychology proposed by Abraham Maslow that outlines a five-tier model of human needs, from basic physiological needs to self-actualization.

Beck's Theory

A cognitive theory of depression that suggests that negative thinking patterns and beliefs cause and maintain depression.