If Thomson Company did not issue any bonds payable during the year and its bonds payable account decreased by $200,000 over the course of a year,then this amount would be shown on the company's statement of cash flows prepared under the indirect method as:
A)a cash inflow of $200,000 under investing activities.
B)a cash outflow of $200,000 under investing activities.
C)a cash inflow of $200,000 under financing activities.
D)a cash outflow of $200,000 under financing activities.

Question

Quizplus · Accepted Answer

The decrease in bonds payable indicates that the company repaid $200,000 of its debt, which is a cash outflow under financing activities.

If Thomson Company Did Not Issue Any Bonds Payable During