A ten-year bond was issued for cash. This transaction should beshown on a statement of...
A ten-year bond was issued for cash. This transaction should be shown on a statement of cash flows under:
a) investing activities
b) operating activities
c) noncash investing and financing activities (completely separate schedule)
d) financing activities
Homework Answers
Correct answer----------Financing activities.
.
Issue of bonds is reported under Financing section of cash flow statement because bonds issue provides cash for the running of the business. Interest on these bonds on the other hand would be reported on operating section of cash flows.
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A ten-year bond was issued for cash. This transaction should beshown on a statement of...
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