34)

The carrying value of bonds is calculated by

(2pts)

subtracting the premium on bonds payable account balance from the bonds payable account balance.

adding the premium on bonds payable account balance to the bonds payable account balance.

adding the discount on bonds payable account balance to the bonds payable account balance.

adding the bonds payable account balance to the bond interest payable account balance.

35)

A $200,000, 8% bond issue was sold at face value and later redeemed at 104% of face value. The corporation would have a

(3pts)

loss of $8,000.

gain of $8,000.

loss of $20,000.

gain of $20,000.

36)

The ability of a business to meet its current obligations may be determined by the

(2pts)

current ratio.

inventory turnover.

working ratio.

accounts receivable turnover.

37)

An example of a cash inflow from operating activities is

(2pts)

net income.

issuance of preferred stock.

buying and selling debt and equity securities.

lending money and collecting the principal on the related loans.

38)

Transactions involving the purchase and sale of long-term assets, investing in equity securities, lending money, and collecting the principal on related loans are called

(2pts)

investing activities.

operating activities.

financing activities.

buying and selling activities.

39)

Those transactions dealing primarily with selling a product or providing a service related to the revenues and expenses reported on the income statement are called

(2pts)

investing activities.

operating activities.

financing activities.

planning activities.

40)

If $10,000 was generated from operations, $4,000 used for investing activities, and $6,000 provided by financing activities, the cash balance must have increased by

(3pts)

$6,000.

$8,000.

$12,000.

$20,000.