The Amortization of a Discount on Bonds Payable

question 102

Multiple Choice

The amortization of a discount on bonds payable:

• A)has no effect on the cash payments for interest reported in the operating activities section of the statement of cash flows
• B)decreases the cash payments for interest reported in the operating activities section of the statement of cash flows
• C)increases the cash payments for interest reported in the operating activities section of the statement of cash flows
• D)is reported in the financing activities section of the statement of cash flows