If $400,000 of Bonds Are Issued During the Year,but $100,000

question 66

Multiple Choice

If $400,000 of bonds are issued during the year,but $100,000 of old bonds are retired during the year,the statement of cash flows(indirect method) will show a(n) :

• A)net gain on retirement of bonds of $300,000 in the financing activities section.
• B)increase in cash of $400,000 in the financing activities section and a decrease in cash of $100,000 in the financing activities section.
• C)net increase in cash of $300,000 in the operating activities section.
• D)net decrease in cash of $300,000 in the operating activities section.

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Definitions:

Creativity

The use of imagination or original ideas to create something; inventiveness.

Positively Correlated

Refers to a relationship between two variables where an increase in one variable is associated with an increase in the other.

Intrinsic Motivation

The internal drive to perform a task or engage in an activity for the inherent enjoyment or satisfaction derived from the activity itself, rather than for some separable consequence.

Interests

The various pursuits or concerns that capture the attention, concern, or investment of an individual or group.