If $200,000 of Bonds Are Issued During the Year but $120,000

question 108

Multiple Choice

If $200,000 of bonds are issued during the year but $120,000 of old bonds are retired during the year, the cash flow statement will show a(n)

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

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