In preparing the Cash flows from operating activities section of the statement of cash flows by the indirect method, the amortization of bond discount for the period is deducted from the net income for the period.

Question

Quizplus · Accepted Answer

The amortization of bond discount is a non-cash expense that is added back to net income in the cash flows from operating activities section when using the indirect method.

In Preparing the Cash Flows from Operating Activities Section of the Statement