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

Question

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

Quizplus · Accepted Answer

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

A Company Prepared the Following Journal Entry: Which of the Following