Question

Money received from issuing bonds payable would be included as part of a company's financing activities on the statement of cash flows.a. Trueb. False

Answer 1

Money received from issuing bonds payable would be included as part of a company's financing activities on the statement of cash flows. True.

Explanation:

The transactions that affects the long term liabilities and equities of any company is known as Financing activities. Those transactions that takes place with investors and creditors for the purpose of expanding company or its operations is known as financial activities. The cash flow statement of any company contains the information about these transactions.

The flow of cash in and out of any company from the investors and creditors respectively involves in financial activities.  Loan that are issued to any company for its operation are included in Cash inflows from creditors. The issue of bonds and bond payments are included in cash outflows from creditors. This also includes the payment of loan and interest. These are included in the statement of cash flows and are considered as the financial activity of a company.