The cash payment for the maturity value of bonds payable is included in the ________ section of the statement of cash flows.
A) operating
B) investing
C) financing
D) noncash

Question

Quizplus · Accepted Answer

The cash payment for the maturity value of bonds payable is considered a financing activity because it involves the payment of funds to the bondholders, who are the financiers of the company. The financing section of the statement of cash flows shows the cash inflows and outflows related to the company's long-term liabilities and equity, such as bond issuances and repayments.

The Cash Payment for the Maturity Value of Bonds Payable