Asked by Thembani VUTUZA on May 13, 2024
Verified
Issuance of bond payable
A) Operating activities
B) Financing activities
C) Investing activities
D) Schedule of noncash financing and investing
Issuance of Bond
The process through which a bond is created and sold to investors, thus raising capital for the issuer.
Financing Activities
Transactions that result in changes to the size and composition of the equity capital or borrowings of an entity.
- Recognize the appropriate classification for cash flow activities such as operating, investing, financing, and noncash investing and financing activities.
Verified Answer
SS
spicy sanduneMay 19, 2024
Final Answer :
B
Explanation :
Issuance of bond payable is a financing activity as it involves obtaining long-term financing from external sources.
Learning Objectives
- Recognize the appropriate classification for cash flow activities such as operating, investing, financing, and noncash investing and financing activities.