When Using the Direct Method, How Is the Retirement of Bonds

question 159

Multiple Choice

When using the direct method, how is the retirement of bonds payable at their maturity date 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:

Disaccharide

Condensation product of two monosaccharides by the elimination of water.

Sucrose

A type of sugar, made of glucose and fructose, often referred to as table sugar.

Glucose

A basic glucose molecule serving as a vital energy source in life and a component in many types of carbohydrates.

Glycogen

An energy-storing polysaccharide made of glucose, found in animals and fungi, with a branched structure.