For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method.
-Redemption of bonds for cash.
A)Added to net income
B)Deducted from net income
C)Cash outflow--investing activity
D)Cash inflow--investing activity
E)Cash outflow--financing activity
F)Cash inflow--financing activity
G)significant noncash investing and financing activity

Question

Quizplus · Accepted Answer

Redemption of bonds is a financing activity because it involves the payment of debt and is not related to the company's core operations. It is a cash outflow because cash is leaving the company to pay off the debt.

For Each of the Following Items, Indicate by Using the Appropriate