If a company repays $100,000 bond, how is this reflected in the cash flow statement?
如果一家公司偿还了 10 万美元的债券，这在现金流量表中如何反映？

Question

BlackTom AI · Accepted Answer

The question asks where a company’s repayment of a bond would be reported in the cash flow statement, presented in multiple-choice form.
Option 1: Operating activities – This category reports cash flows related to the core business operations, such as cash receipts from customers and cash payments to suppliers and employees. Debt repayment is not part of operating activities, so this option misclassifies the item.
Option 2: Financing activities – This section records cash flows related to transactions with the company’s owners and creditors, including issuing or repaying debt and equity. Repayment of bonds reduces a liability and involves an outflow of cash to creditors, which is characteristic of financing activities.
Option 3: Tax activities – This category would capture cash flows related to taxes. Bond repayment has nothing to do with tax activity, so this choice is incorrect.
Option 4: Investing activities – This section covers cash flows related to the acquisition or disposal of long-term assets and investments. A bond repayment is not an investment in or disposal of long-term assets, so this option does not fit.

In summary, the action described—repayment of debt—fits the financing activities category because it reflects a cash outflow to reduce long-term liabilities, aligning with the nature of financing cash flows. The other options describe cash flow activities that do not pertain to debt transactions and therefore are not appropriate classifications for bond repayments.

If a company repays $100,000 bond, how is this reflected in the cash flow statement? 如果一家公司偿还了 10 万美元的债券，这在现金流量表中如何反映？

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