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Non-Current (Long-Term) Liabilities – Question Bank with Explained Answers at the end of questions 2024
- Exam (elaborations) • 18 pages • 2024
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LO.a: Determine the initial recognition, initial measurement and subsequent measurement 
of bonds. 
1. A company raises debt in the form of bonds of £10 million face value. When bonds are 
issued, the company will record a: 
A. cash inflow from financing activities. 
B. cash outflow from financing activities. 
C. cash inflow from investing activities. 
2. Federal Motors reports using US GAAP. If at the time of its latest bond issue, it incurs 
€20,000 in printing, legal fees, commissions and ...
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