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Bonds signify a promise to make future principle and interest payments, typically on a semi-annual basis. In contrast to notes payable, which often indicate a debt owed to a single lender, bonds are typically issued concurrently to numerous lenders.

Operating Activities will be impacted in the statement of cash flows if cash is paid to fulfill an obligation for salaries payable.

Our obligation to pay outstanding salaries is being satisfied. This results in a cash outflow, and the cash flow statement classifies both the cash inflow from accounts receivable and the cash outflow from salaries payable as operating activities.

Cash flow from operations demonstrates that a company's revenue comes from ongoing operations and details the expenditures made over a given time period. Cash flows from typical operating activities include cash from client sales, cash paid to suppliers, cash paid as interest to lenders, and other such items.

For additional information on the cash flow and bonds statement, see:

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