The conversion of long-term bonds into common stock is an example of a transaction involving two financing activities with no cash flow effect.

Name: The conversion of long-term bonds into common stock is an example of a transaction involving two financing activities with no cash flow effect.
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This conversion does not involve any cash inflow or outflow, as it is simply an exchange of one form of financing (debt) for another (equity), thus not affecting the company's cash flow.

The Conversion of Long-Term Bonds into Common Stock Is an Example