When a company purchases equipment using common stock, the equipment purchase is reported as cash flow from financing activities in the statement of cash flows, An advantage of issuing a bond relative to stock is that the bond interest payments are tax deductible. f. g. Increases in the market rate of interest subsequent to a bond issuance h. increase the discount on the bond. Amortization of discount on bonds payable will make the amount of interest expense less than the cash coupon payment for that year. A contingent liability is disclosed in a note to the financial statements when the liability is reasonably possible and can be estimated. When a company purchases equipment using common stock, the equipment purchase is reported as cash flow from financing activities in the statement of cash flows, An advantage of issuing a bond relative to stock is that the bond interest payments are tax deductible. f. g. Increases in the market rate of interest subsequent to a bond issuance h. increase the discount on the bond. Amortization of discount on bonds payable will make the amount of interest expense less than the cash coupon payment for that year. A contingent liability is disclosed in a note to the financial statements when the liability is reasonably possible and can be estimated