Anders Inc, Reported That Its Bonds with a Par Value

question 153

Multiple Choice

Anders Inc, reported that its bonds with a par value of $500,000 and a carrying value of $545,000 were retired for $525,000 resulting in a gain of $20,000. The amounts to be reported on the statement of cash flows include:

• A)a $45,000 decrease in cash for financing activities
• B)a $525,000 decrease in cash for investing activities and a $45,000 increase in financing activities.
• C)a $20,000 decrease in cash from operating activities and a $525,000 decrease in cash for financing activities.
• D)$20,000 increase in cash from operating activities and a $545,000 decrease in cash used for financing activities.

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Definitions:

Economic Development

The process by which the economic well-being and quality of life of a nation, region, or local community are improved according to specific goals and objectives.

Poverty

A condition where a person or community lacks the financial resources and essentials for a minimum standard of living.

Population Growth

A growth in the population size over a designated time frame.

Death Rates

An index reflecting the total number of fatalities within a specific group, adjusted for its size, over a given period.