In preparing a statement of cash flows, converting bonds into common stock would be reported in:
A) the operating activities section.
B) the investing activities section.
C) the financing activities section.
D) a separate schedule or note to the financial statements.

Question

Quizplus · Accepted Answer

Converting bonds into common stock is a non-cash financing activity and is reported in a separate schedule or note to the financial statements, not in the main sections of the cash flow statement.

In Preparing a Statement of Cash Flows, Converting Bonds into Common