If $250,000 of Bonds Are Issued During the Year but $100,000

question 85

Multiple Choice

If $250,000 of bonds are issued during the year but $100,000 of old bonds are retired during the year, the statement of cash flows will show a(n)

• A) net increase in cash of $150,000.
• B) net decrease in cash of $150,000.
• C) increase in cash of $250,000 and a decrease in cash of $100,000.
• D) net gain on retirement of bonds of $150,000.

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Definitions:

Uninsurable Risks

Represent risks that insurance companies are not willing to cover due to their unpredictable nature or high likelihood of loss.

Production Innovations

New and improved methods or products that increase efficiency or quality in manufacturing or service delivery.

Economic Profits

Profits exceeding the opportunity costs of a business, indicating gains beyond the next best alternative use of its resources.

Monopoly Power

The ability of a single seller or company to control the market for a particular good or service, allowing them to set prices above competitive levels.