In a statement of cash flows, issuing bonds payable affects the:
A) operating activities section.
B) financing activities section.
C) investing activities section.
D) free cash flow activities section.

Question

Quizplus · Accepted Answer

Issuing bonds payable is considered a financing activity because it involves obtaining funds from external sources. The proceeds from the issuance of bonds payable are typically used to finance long-term investments, such as the purchase of property, plant, and equipment or to repay existing debt.

In a Statement of Cash Flows, Issuing Bonds Payable Affects