The retirement of callable bonds at an amount above face value would appear on a statement of cash flows as an:
A)inflow in the financing activities section.
B)outflow in the financing activities section.
C)inflow in the operating activities section.
D)outflow in the operating activities section.

Question

Quizplus · Accepted Answer

Retirement of callable bonds at an amount above face value is a financing activity, as it involves the use of funds from external sources to pay off debt. It would be considered an outflow in the financing activities section of the statement of cash flows.

The Retirement of Callable Bonds at an Amount Above Face