A new issue of bonds is
1) a cash outflow
2) a cash inflow
3) a long-term asset
4) a long-term liability
A)1 and 3
B)1 and 4
C)2 and 3
D)2 and 4

Question

​A new issue of bonds is
1) a cash outflow
2) a cash inflow
3) a long-term asset
4) a long-term liability
A)​1 and 3
B)​1 and 4
C)​2 and 3
D)​2 and 4

Quizplus · Accepted Answer

Issuing new bonds results in a cash inflow for the company as it receives money from investors. The bonds represent a long-term liability because the company is obligated to pay back the principal and interest in the future.

​A New Issue of Bonds Is

A New Issue of Bonds Is