A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in
A) a separate schedule
B) the cash flows from financing activities section
C) the cash flows from investing activities section
D) the cash flows from operating activities section

Question

Quizplus · Accepted Answer

This transaction is a non-cash financing activity and would be reported in a separate schedule or note to the statement of cash flows, as it does not involve cash inflow or outflow.

A Business Issues 20-Year Bonds Payable in Exchange for Preferred