For each of the following operating activities, select whether it is a source of cash, a use of cash, neither under the indirect method.
-loss on early redemption of bonds
A)source
B)use
C)neither

Question

Quizplus · Accepted Answer

A loss on the early redemption of bonds is added back to net income in the operating activities section of the cash flow statement when using the indirect method, indicating it is considered a source of cash for the purpose of this reconciliation.

For Each of the Following Operating Activities, Select Whether It