Reference no: EM132574543

Question 1: An extraordinary item can result from

A. a transaction or event that is unusual and occurs infrequently

B. a change from one accounting method to another acceptable accounting method

C. a segment of the business being sold

D. corporate income tax being paid

Question 2: Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 97.5, what is the amount of gain or loss on redemption?

A. $25,000 gain

B. $10,000 loss

C. $15,000 gain

D. $25,000 loss

Question 3: On the statement of cash flows, the cash flows from operating activities section would include

A. payment for interest on short-term notes payable

B. payments for the purchase of investments

C. payments for cash dividends

D. receipts from the issuance of capital stock