The cash received from the sale of bonds payable is included in the ________ section of the statement of cash flows.

Question

Quizplus · Accepted Answer

The cash received from the sale of bonds payable is a financing activity since it represents funds raised by the company through a borrowing arrangement. The cash flow statement separates activities into three categories: operating, investing, and financing. The operating section includes cash flows related to day-to-day business operations, while the investing section includes cash flows related to the acquisition or disposal of long-term assets. The financing section, on the other hand, includes cash flows related to the issuance or repayment of debt and the issuance of equity securities.

The Cash Received from the Sale of Bonds Payable Is