When using the direct method to determine operating cash flows,how is the retirement of bonds payable at their maturity date shown on the Statement of Cash Flows?
A)Operating activity
B)Investing activity
C)Financing activity
D)Noncash investing and financing activity
E)Not reported on the statement of cash flows

Question

Quizplus · Accepted Answer

The retirement of bonds payable is a financing activity and should be included in the financing section of the Statement of Cash Flows, as it represents a repayment of debt.

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