You graphed bond interest expense and interest paid over the life of a bond. You noticed that the interest expense line was below the interest paid line. Identify the statement below that is best described by the graph you drew.

Select one:

A.Effective interest amortization is used

B.The bond was issued at a discount

C.Discounted interest amortization is used

D.The bond was issued at a premium

E.The bond was issued at par

The appropriate statement of cash flow activity category for the payment of wages is

Select one:

A.Operating

B.Financing

C.Not reported on the statement of cash flows

D.Investing

E.Schedule of noncash investing or financing activity