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

Question

Quizplus · Accepted Answer

When a company sells its corporate bonds, it receives cash and this cash inflow is categorized as an investing activity on the statement of cash flows. Therefore, selling corporate bonds held as a long-term investment would increase cash flows from investing activities on the statement of cash flows.

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