When a Company Purchases and Retires Its Bonds,which of the Following

question 47

Multiple Choice

When a company purchases and retires its bonds,which of the following is the correct reporting on the statement of cash flows?

• A)Gain or loss in operating section,amount of cash paid in investing section
• B)Gain or loss in financing section,amount of cash received in operating section
• C)Gain or loss in operating section,amount of cash paid in financing section
• D)Gain or loss in investing section,amount of cash received in operating section

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Definitions:

Negative Income Tax

A program where the government provides additional income to those who earn under a specific threshold, rather than collecting taxes from them.

Tax Liability

Tax liability is the total amount of tax that an individual or organization is legally obligated to pay to a taxing authority based on earnings, property ownership, or other taxable conditions.

Earned Income Tax Credit

A tax credit in the United States designed to benefit individuals and families with low to moderate incomes, effectively reducing the amount of tax owed and possibly resulting in a refund.

Minimum-Wage Laws

Legislation that sets the lowest hourly wage rate that an employer can legally pay their workers.