1. During the 20XX business year, ABC Company received $1,500,000 in cash from issuing 10%, five-year bonds. What section of the statement of cash flows would this appear under?

a) Operating

b) Investing

c) Financing

d) Non-cash

2. XYZ Company previously issued $100,000 worth of 6%, ten-year bonds that pay interest semiannually. These bonds were issued at a bond price of 102. Whenever XYZ Company pays interest on these bonds, how much will the total cash payment for interest be?

a) $30,000

b) $30,600

c) $60,000

d) $102,000

3. During the 20XX business year, ABC Company retired $400,000 worth of bonds that had matured by issuing 20,000 shares of the company's common stock to their bondholders. What section of a statement of cash flows would this appear under?

Operating

Investing

Financing

Non-cash

4. XYZ Company currently has 2,000,000 shares of $3 par common stock issued and outstanding. If the company enacts a 3-for-1 stock split, what will the par value of each of its common shares be after the split?

$1

$3

$9

$6,000,000

5. Company A sold shares of Company B's stock for $10 per share. Company A originally purchased those shares for $5 per share three years ago. The journal entry to record the sale of these shares will contain a ______.

Debit to loss on investment sale

Credit to loss on investment sale

Debit to gain on investment sale

Credit to gain on investment sale