Which of the following represents a cash inflow from financing activities?
A)Issuing stock in exchange for another company's stock.
B)Paying a bond's face value at maturity.
C)Issuing long-term bonds at a discount.
D)Receiving interest on promissory notes.

Question

Quizplus · Accepted Answer

The cash received from the issuance of long-term bonds (whether at a discount,premium,or at par)is a cash inflow from financing activities.Issuing stock in exchange for another company's stock is classified as a noncash (rather than cash)financing transaction.Paying a bond at maturity is a cash outflow (rather than an inflow)from financing activities.The receipt of interest is a cash inflow from operating (rather than financing)activities.

Which of the Following Represents a Cash Inflow from Financing