The issuance of bonds is shown on the statement of cash flows as
A)a cash inflow from financing activities.
B)a cash inflow from investing activities.
C)a cash inflow from operating activities.
D)a cash outflow from financing activities.
E)a cash outflow from investing activities.

Question

Quizplus · Accepted Answer

The issuance of bonds is a form of financing activity because it involves obtaining funds from external sources. Therefore, it is shown on the statement of cash flows as a cash inflow from financing activities.

The Issuance of Bonds Is Shown on the Statement of Cash