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A company prepared the following journal entry: Bonds payable Premium on bonds payable Gain on bond retirement Cash Which of the following statements is incorrect?

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A company prepared the following journal entry: Bonds payable Premium on bonds payable Gain on bond retirement Cash Which of the following statements is incorrect? The increase in stockholders' equity equals the gain on the bond retirement. The decrease in assets is less than the decrease in liabilities. The net cash flow from financing activities decreases by the cash payment. The book value of the bonds was less than the cash payment

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