Proceeds from Bonds Issued for the Construction of Capital Assets

question 10

Multiple Choice

Proceeds from bonds issued for the construction of capital assets are classified on the Statement of Cash Flows for an Enterprise Fund as

• A)Cash Flows from Operating Activities.
• B)Cash Flows from Noncapital Financing Activities.
• C)Cash Flows from Capital and Related Financing Activities.
• D)Cash Flows from Investing Activities.

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Definitions:

Trade Discounts

Reductions in the listed price of goods or services offered to customers, usually based on volume purchased or early payment.

Customer Discount

A reduction in the price offered to customers, often as an incentive for early payment or as part of promotional efforts.

Sales Tax

A tax imposed by governments on the sale of goods and services, collected by the retailer at the point of purchase.

Sales Discount

From the seller’s perspective, a discount that a seller may offer the buyer for early payment.