Ask Question
1 April, 11:48

A company reported that its bonds with a par value of $50,000 and a carrying value of $62,000 are retired for $66,000 cash, resulting in a loss of $4,000. The amount to be reported under cash flows from financing activities is: Multiple Choice $12,000. $ (12,000). $ (62,000). $ (66,000). $ (4,000).

+2
Answers (1)
  1. 1 April, 12:12
    0
    ($66,000)

    Explanation:

    Financing activities: It measures those transactions which are related to the long term liabilities and stockholder equity. The issuance of shares is an inflow of cash whereas redemption, the retirement of bond and dividend paid is a cash outflow in which the cash balance is reduced.

    Since in the given question, the bond is retired for $66,000 cash which represents the cash outflow for $66,000 only as it includes the transaction of cash
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company reported that its bonds with a par value of $50,000 and a carrying value of $62,000 are retired for $66,000 cash, resulting in a ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers