When Using the Indirect Method, How Would the Retirement of Bonds

question 34

Multiple Choice

When using the indirect method, how would the retirement of bonds payable at their maturity date be shown on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Noncash investing and financing activity

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Worksheet

An informal accounting document used inside an organization, facilitating the preparation of financial statements and supporting the adjustment process at the end of an accounting period.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income.