When the indirect method is used to determine operating cash flows,how will the retirement of bonds payable at their maturity date be shown on the statement of cash flows?

Question

Quizplus · Accepted Answer

The retirement of bonds payable at their maturity date represents a financing activity since it involves the payment of a long-term liability. Therefore, it would be shown under the financing activities section of the statement of cash flows when using the indirect method to determine operating cash flows.

When the Indirect Method Is Used to Determine Operating Cash