Royer Corporation engaged in this transaction:
Retired long-term debt with cash.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Operating activities section
B) Does not represent a cash flow
C) Investing activities section
D) Financing activities section

Question

Royer Corporation engaged in this transaction:
 Retired long-term debt with cash.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Operating activities section
B) Does not represent a cash flow
C) Investing activities section
D) Financing activities section

Quizplus · Accepted Answer

Retiring long-term debt with cash involves a financing activity as it affects the company's long-term liabilities and cash position. Therefore, it should be reported in the financing activities section of the statement of cash flows.

Royer Corporation Engaged in This Transaction