Asked by Sewisha Thabo Lehong on Jul 01, 2024
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The cash payment for interest on a bond payable is reported as a cash flow from financing activities on the statement of cash flows.
Bond Payable
A long-term debt instrument issued by corporations or governments, obliging the issuer to pay back the principal along with interest at a specified future date.
Financing Activities
Actions leading to alterations in the magnitude and structure of a corporation's equity and debt.
Statement of Cash Flows
An accounting summary that shows the overall cash received by a business from its operational activities and investment income, and the cash expended on its business processes and investment opportunities during a set period.
- Understand the classifications of cash flows in the statement of cash flows.
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Learning Objectives
- Understand the classifications of cash flows in the statement of cash flows.
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