A Company Prepared the Following Journal Entry: Which of the Following

question 47

Multiple Choice

A company prepared the following journal entry: Which of the following statements is incorrect?

• A)The book value of the bonds was less than the cash payment.
• B)The increase in stockholders' equity equals the gain on the bond retirement.
• C)The decrease in assets is less than the decrease in liabilities.
• D)The net cash flow from financing activities decreases by the cash payment.

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Definitions:

RAM

Random Access Memory, a type of computer memory that is used to store data temporarily while a computer is running, facilitating quick access by the CPU.

ESATA

External Serial Advanced Technology Attachment, an extension of the SATA interface to connect external storage devices to a computer.

Optical Media

Storage disks such as CDs, DVDs, and Blu-ray discs that use laser light to read and write data.

Eighth Channel

The Eighth Channel typically refers to a specific channel in a multi-channel audio or data system, which could be used for various purposes depending on the context.