Payments of interest expense on bonds are reported as outflows of cash in the financing section of the statement of cash flows.
Answer: False - Cash inflows from the sale of bonds and outflows for the payment of principal on bonds are reported in the financing activities section of the statement of cash flows; however, bond interest payments are directly related to earning income and, as such, are reported in the operating activities section of the statement of cash flows
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.