A Company Prepared the Following Journal Entry: Bonds Payable
Premium $\quad$

Multiple Choice

A company prepared the following journal entry: Bonds payable
Premium on bonds payable
Loss on bond retirement
$\quad$ Cash Which of the following statements is correct?

A) The book value of the bonds was less than the cash payment.
B) The increase in stockholders' equity equals the loss on the bond retirement.
C) The decrease in assets is greater than the decrease in liabilities, therefore stockholders' equity decreases.
D) The net cash flow from financing activities decreases by the bonds payable book value.