The amortization of bond discount is included in the statement of cash flows (indirect method) as:
A) A financing cash inflow.
B) An investing activity.
C) An addition to net income.
D) A deduction from net income.

Question

Quizplus · Accepted Answer

The amortization of bond discount is added back to net income in the operating activities section of the statement of cash flows when using the indirect method, because it is a non-cash expense that reduced net income.

The Amortization of Bond Discount Is Included in the Statement