Question

a company reported that its bonds with a par value of $40,000 and a carrying value of $52,000 are retired for $60,000 cash, resulting in a loss of $8,000. the amount to be reported under cash flows from financing activities is . multiple choice 2 $(8,000) $(60,000) $12,000 $40,000 $(52,000)

Answer 1

Option b. $60000 is the correct answer. The reported amount for cash flow from financing activities will be $60,000

Operating, financing and investing activities are the three categories that the statement of cash flows divides into as sources or uses of the money.

The cash flow statement is one of the most important yet frequently disregarded sections of a company's financial statements. Anyone, be they an analyst, investor, credit provider, or auditor, is able to fully comprehend the sources and uses of a company's cash with the aid of this information.

The cash flow only shows the actual amount of cash being spent or received. The company retired the bonds in this instance for $60,000 cash, so there will be less cash under financing activities.

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