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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Definitions:

Mission Statement

A formal summary of the aims and values of a company, organization, or individual.

Executive Summary

One- to two-page snapshot of what the overall business plan explains in detail.

Business Incubator

Local programs designed to provide low-cost shared business facilities to small start-up ventures.

Small Business Investment Companies (SBICs)

Privately owned and managed investment funds that are licensed and regulated by the SBA, providing capital to small businesses.