A Company Reported That Its Bonds with a Par Value

question 116

Multiple Choice

A company reported that its bonds with a par value of $50,000 and a carrying amount of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:

• A) $(3,000).
• B) $(60,000).
• C) $(57,000).
• D) Zero. This is an operating activity.
• E) Zero. This is an investing activity.

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Definitions:

Sweatshops

Work environments that have poor working conditions, violations of labor laws, and unethical treatment of workers, often with extremely low pay.

Poor Working Conditions

An environment where the safety, health, and well-being of employees are not adequately protected.

Low Wages

Compensation that is considered less than the average or standard in a specific industry or region.

Cultural Intelligence

The ability to understand, respect, and work effectively with people from different cultural backgrounds.