In preparing a statement of cash flows, the conversion of bonds into common shares will be reported in the
A) financing activities section.
B) notes to the financial statements.
C) investing activities section.
D) shareholders' equity section.

Question

Quizplus · Accepted Answer

The conversion of bonds into common shares is a non-cash financing activity and is typically disclosed in the notes to the financial statements rather than in the main sections of the cash flow statement.

In Preparing a Statement of Cash Flows, the Conversion of Bonds