Factor

question 7

Multiple Choice

Factor.

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Definitions:

Bond Discount

The difference between the face value of a bond and the price for which it sells when the selling price is lower than its face value.

Indirect Method

A cash flow statement technique that starts with net income and adjusts for changes in balance sheet accounts to arrive at operating cash flow.

Capital Expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Operating Expenses

The ongoing costs for running a business that are not directly tied to the production of goods or services, such as rent, utilities, and salaries.