When using the direct method,how is the retirement of bonds payable at their maturity date shown on the statement of cash flows?
A)As an operating activity
B)As an investing activity
C)As a financing activity
D)As a noncash investing and financing activity

Question

Quizplus · Accepted Answer

Retirement of bonds payable at their maturity date is considered a financing activity since it involves the repayment of borrowed funds. Hence, it is shown as a financing activity on the statement of cash flows when using the direct method.

When Using the Direct Method,how Is the Retirement of Bonds