Haven Corporation Issued $700,000 of 10-Year Bonds Payable at Par

question 38

Multiple Choice

Haven Corporation issued $700,000 of 10-year bonds payable at par in 2005. During 2009 Haven paid $50,000 interest and an additional $233,333 to retire one-third of the bonds at par. These activities would be reported in Haven's statement of cash flows for 2009 as:

• A) $283,333 net cash provided by financing activities.
• B) $283,333 net cash used in financing activities.
• C) $233,333 net cash used in financing activities, and $50,000 cash disbursed for operating activities.
• D) $466,667 net cash provided by financing activities, and $50,000 cash disbursed for operating activities.

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Definitions:

Correct Actions

Appropriate or effective measures taken to achieve a desired outcome or resolve a specific situation.

Monopsony

A market situation where there is only one buyer for a product or service.

Labor Market

The supply of available workers in relation to available work.

Labor Supply Curve

A graphical representation showcasing the relationship between the wage rate and the quantity of labor workers are willing to supply.