For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method (a) or the Indirect method (b).
-Gain on early retirement of bonds
A)Direct
B)Indirect

Question

Quizplus · Accepted Answer

The gain on early retirement of bonds is a non-cash item and would not appear on the statement of cash flows using the direct method. It would be included in the financing section under cash inflows from financing activities if using the indirect method.

For Each of the Following Items, Indicate Whether It Would