Payments to acquire bonds of other corporations should be classified on a statement of cash flows as:
A) A lending activity.
B) An operating activity.
C) A financing activity.
D) An investing activity.

Question

Quizplus · Accepted Answer

Payments to acquire bonds of other corporations are made for investing purposes, as they represent investments in the debt securities of other companies. Therefore, they should be classified on a statement of cash flows as an investing activity.

Payments to Acquire Bonds of Other Corporations Should Be Classified