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

question 115

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)As an operating activity
• B)As an investing activity
• C)As a financing activity
• D)As a noncash investing and financing activity

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Definitions:

Compensation Plan

A detailed plan that outlines the salary, wages, benefits, and incentives for employees, designed to motivate and reward them.

Measurement Date

The specific date at which the values of assets and liabilities are determined in the preparation of financial statements.

Stock Appreciation Rights

A type of employee compensation linked to the increase in the company's stock price over a set period, allowing employees to profit from the appreciation without owning the stock.

Compensation Expense

The total cost incurred by a business for the payment of salaries, wages, benefits, and other forms of compensation to employees.