Ask Question
BusinessBusiness
28 June, 02:07

In what section of the statement of cash flows will the issuance of bonds payable to acquire a building be reported?

+3
Answers (1)
  1. 28 June, 02:33
    0
    Cash inflow from Financing Activity.

    Explanation:

    We know, that issuance of bonds = Financing Activity in cash flow statement.

    But only the transactions involving cash transactions are recorded in cash flow statement.

    Thus, here the purpose of issue of bonds is to acquire a building, but it is not issued in exchange of building.

    Thus, the cash collected from issue of bonds will be used for the acquisition of building therefore, cash collected through issue of bonds is cash inflow from financing activity.

    When the building will be bought it will be cash outflow in investing activity.

    Final Answer

    Cash inflow from Financing Activity.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “In what section of the statement of cash flows will the issuance of bonds payable to acquire a building be reported? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Last year, flash company sold 15,000 units of its only product. if sales increased by 20% in the current year, how will total variable cost and total fixed cost be affected?
Answers (1)
A company that manufactures and sells kitchen scrubbing sponges has significantly lower cost structures than its competition. The company sells in large volumes and has realized economies of scale in its productions of the scrubbing sponges.
Answers (1)
Which of the statements below is TRUE? A. Accounting Identity is: Assets = Liabilities minus - Owners' Equity. B. Accounting Identity is: Liabilities = Assets + Owners' Equity. C. Accounting Identity is: Assets = Liabilities + Owners' Equity. D.
Answers (1)
Norman is a franchisee of MegaFurnishings, a furniture store. Norman breaches the franchise agreement. The contract states that the franchisee, Norman, must be given notice of termination but does not specify a time for termination in the agreement.
Answers (1)
Consider a firm making production decisions in the long run. Select the statement (s) that must be correct. Choose one or more: A. Average total cost will always exceed average variable cost. B.
Answers (1)
New Questions in Business
Wolfgang, who is age 33, records AGI of $125,000. He incurs the following itemized deductions for 2018: Medical expenses [$15,000 - (7.
Answers (1)
If Bojana Tax Services' office supplies account balance on March 1 was $1,400, the company purchased $675 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,250 unused, what is the amount of the
Answers (1)
During Burns Company's first year of operations, credit sales totaled $156,000 and collections on credit sales totaled $113,000. Burns estimates that bad debt losses will be 1.0% of credit sales.
Answers (1)
A rational decision maker takes an action only if the a. marginal benefit is greater than both the average cost and the marginal cost. b. marginal benefit is greater than the marginal cost. c. marginal benefit is less than the marginal cost. d.
Answers (1)
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $110,500, and it estimates that 6% will be uncollectible. Required: 1.
Answers (1)
Home » Business » In what section of the statement of cash flows will the issuance of bonds payable to acquire a building be reported?
Sign Up Forgot Password?