Which of the following statements is incorrect?
A) It is common for companies to retire bonds and also issue new bonds in the same year as a way to replace higher interest rate debt with lower interest rate issuances.
B) The cash payment of interest is reported as a cash flow from operating activities.
C) Retiring bonds by paying cash creates a cash flow from investing activities when the issuing company buys the bonds back from investors.
D) The cash payment to call an outstanding bond issue is reported as a cash flow from financing activities.
Correct Answer:
Verified
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