In a statement of cash flows, payments to acquire long-term bonds or other debt instruments with maturities greater than one year of other entities should be classified as cash outflows for
a. operating activities.
b. financing activities.
c. investing activities.
d. lending activities.
e. exchange transactions.
C
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What will be an ideal response?
If bonds with a face value of $205,000 are issued at 110, the amount of cash proceeds is ________.
A) $225,390 B) $205,000 C) $186,364 D) $225,500
A firm classifies liabilities which fall due within the operating cycle, usually one year, as
a. a current liability. b. a long-term liability. c. a noncurrent asset. d. part of shareholders' equity. e. a contingent liability.
To effectively evaluate cash flows, we separately analyze investing, financing, and operating activities.
Answer the following statement true (T) or false (F)