Prepared under the indirect method


If Thomson Company did not issue any bonds payable during the year and its bonds payable account decreased by $200,000 over the course of a year, then this amount would be shown on the company's statement of cash flows prepared under the indirect method as:


a. a cash inflow of $200,000 under investing activities.

b. a cash outflow of $200,000 under investing activities.

c. a cash inflow of $200,000 under financing activities.

d. a cash outflow of $200,000 under financing activities.

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Accounting Basics: Prepared under the indirect method
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