A Company Buys a Building by Issuing Bonds

question 62

Multiple Choice

A company buys a building by issuing bonds.How would it record the purchase of building?

• A)It would be an increase to investing activities only.
• B)It would be an increase to financing activities only.
• C)It would be a noncash transaction listed in supplementary schedule.
• D)It would be a noncash transaction not needing any disclosure.

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Definitions:

Critical Value

A point on a statistical distribution that represents a threshold at which the null hypothesis is either rejected or not rejected.

Hypothesis Test

A statistical method that uses sample data to evaluate a hypothesis about the properties of a population.

Commuted

Refers to the action of commuting, which is traveling from one's home to work or school, or it can refer to changing a legal penalty to a less severe one.

Curriculum

A structured set of educational and training materials provided in schools, universities, or workplaces, covering all the subjects or skills to be taught.