A Company Reported That Its Bonds with a Par Value

question 123

Multiple Choice

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash,resulting in a loss of $3,000.The amount to be reported under cash flows from financing activities is:

• A)$3,000 outflow.
• B)$60,000 outflow.
• C)$57,000 outflow.
• D)Zero.This is an operating activity.
• E)Zero.This is an investing activity.

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Definitions:

Fraudulent Misrepresentation

False statements or claims made knowingly with the intention of deceiving another party, leading them to enter into a contract or agreement.

Undue Force

Excessive or inappropriate use of physical or psychological pressure in an attempt to influence someone's actions.

False Imprisonment

The act of restraining a person against their will in a bounded area without any legal authority to do so.

Shoplifting

Shoplifting involves the unauthorized removal of goods from a store without payment.