When using the indirect method to determine operating cash flows,how is the issuance of stock to retire a long-term debt shown on a statement of cash flows?
A)Operating activity
B)Investing activity
C)Financing activity
D)Noncash investing or financing activity
E)Not reported on the statement of cash flows

Question

Quizplus · Accepted Answer

The issuance of stock to retire a long-term debt is a noncash transaction and is reported in the notes or a separate schedule accompanying the statement of cash flows, not within the main sections of the statement itself.

When Using the Indirect Method to Determine Operating Cash Flows,how