The sale of corporate bonds held by the firm as a long-term investment would increase cash flows from investing activities.

Question

Quizplus · Accepted Answer

When a firm sells corporate bonds held as a long-term investment, it receives cash that is recorded as a cash inflow in the investing activities section of the statement of cash flows. Therefore, this sale would increase cash flows from investing activities.

The Sale of Corporate Bonds Held by the Firm as a Long-Term