The Retirement of Callable Bonds at an Amount Above Face

question 89

Multiple Choice

The retirement of callable bonds at an amount above face value would appear on a statement of cash flows as an:

• A)inflow in the financing activities section.
• B)outflow in the financing activities section.
• C)inflow in the operating activities section.
• D)outflow in the operating activities section.

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Definitions:

Negation

The grammatical or logical operation whereby a proposition or expression is made negative, denying its content.

Order of Operations

A set of rules used in math to determine the sequence in which operations should be performed.

Circular References

A situation in formulas where a reference is made back to the original cell, potentially causing an error or infinite loop.

Direct Circular References

An error condition in formulas where two or more elements reference each other in a loop, causing a calculation problem.