David Corporation Issued $100,000, 5-Year Bonds at 97 on January

question 37

Multiple Choice

David Corporation issued $100,000, 5-year bonds at 97 on January 1, 2008. On December 31, 2012 the bonds matured. The payment of the bonds at maturity would be reported on the statement of cash flows as a cash outflow of:

• A) $97,000 in the financing activities section.
• B) $97,000 in the investing activities section.
• C) $100,000 in the financing activities section
• D) $100,000 in the investing activities section.

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Definitions:

Fire Extinguishers

Portable devices that emit substances to extinguish a fire by cooling the burning material, depriving the flame of oxygen, or interfering with the chemical reactions occurring.

Sale Of Goods

The transfer of ownership of goods from a seller to a buyer for a price.

Specific Quantity

A precise amount or number of items designated in an agreement or contract.

Promise To Ship

A commitment or agreement to dispatch goods to a buyer within a specified period.