Oriole Company Had a Long-Term Debt of $1,500,000

question 18

Multiple Choice

Oriole Company had a long-term debt of $1,500,000. To extinguish this debt the company issued $1,500,000 of fully paid shares to the lender. This transaction would have the following impact on the statement of cash flows:

• A)increase cash flow from financing activities by $1,500,000.
• B)decrease cash by $1,500,000.
• C)increase cash by $1,500,000.
• D)nil impact.

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Definitions:

Referral

Sending a patient to a provider of a different specialty for treatment beyond the scope of practice for the initial practitioner.

Physician

A medical professional who diagnoses, treats, and manages patients’ diseases and injuries, utilizing medical knowledge and skills.

Administrative Data

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Details such as phone number, email address, or physical address that enable communication with an individual or organization.