Question
Company A (issuer) and Company B (creditor) Company A is the issuer of bonds, and Company B purchases Company A's bonds. Which of the following
Company A (issuer) and Company B (creditor) Company A is the issuer of bonds, and Company B purchases Company A's bonds. Which of the following is true? Multiple Choice Company A and Company B both record the bond as a liability on their balance sheets. When Company A makes interest payments. Company B records the cash interest payments received as a financing activity cash flow. When Company A makes interest payments. Company B records the cash interest payments received as a financing activity cash flow. On Company B's statement of cash flows, the cash paid for the bonds is classified as a investing activity cash flow On Company A's statement of cash flows, the cash received from the bond issuance is classified as an operating activity cash flow. Company A is the lender, and Company B is the borrower
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