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.