Issuing Bonds Are Shown on the Statement of Cash Flows

question 105

Multiple Choice

Issuing bonds are shown on the statement of cash flows as:

• A)investing activities.
• B)operating activities.
• C)financing activities.
• D)none of the above. It is not shown on the statement of cash flows.

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Definitions:

Step-Variable Cost

Costs that are fixed over a small range of activity but can change with significant changes in the volume of activity.

Sunk Cost

Expenses already incurred and which cannot be recovered, and should not be considered when making future business decisions.

Direct Manufacturing Cost

The sum of all costs directly tied to the production process, including direct labor and raw materials.

Manufacturing Overhead

Costs incurred in the production process that are not directly associated with individual units, including indirect materials, labor, and utilities, vital for operational continuity.