Transactions involving bonds would be reported on the statement of cash flows as follows:
a. the issuance of the bonds as a cash inflow from financing activities and the repayment of bond principal upon maturity as a cash outflow from financing activities.
b. the issuance of the bonds as a cash outflow from financing activities and the repayment of bond principal upon maturity as a cash inflow from financing activities
c. the issuance of the bonds as a cash inflow from financing activities and the repayment of a bond principal upon maturity as a cash outflow from investing activities
d. the issuance of the bonds as a cash outflow from financing activities and the repayment of bond principal upon maturity as a cash inflow from investing activities
Answer: a. the issuance of the bonds as a cash inflow from financing activities and the repayment of bond principal upon maturity as a cash outflow from financing activities.
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