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Sagot :
The payment of a bond payable would be classified as a financing activity on the statement of cash flows.
What is Bonds Payable?
The amount that the issuer owes bondholders is recorded in the liability account known as Bonds Payable. Due to the fact that bonds often have a longer maturity period than one year, this account is typically seen in the long-term liabilities area of the balance sheet. Bonds payable typically fall under the category of liabilities that are not current.
Bonds may be offered at par, a discount, or a premium. The price of these bonds is determined by the discrepancy between the coupon rate and the market yield at issuance. A company's issue of bonds is a finance operation. Cash flows between a company's creditors, owners, and owners are referred to as financing activities. A business and a creditor exchange money by issuing bonds.
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