Which of the following statements is incorrect? Multiple Choice The cash payment of interest is reported as a cash flow from operating activities. It is common for companies to retire bonds and also issue new bonds in the same year as a way to replace higher interest rate debt with lower interest rate issuances. Retiring bonds by paying cash creates a cash flow from investing activities when the issuing company buys the bonds back from investors. The cash payment to call an outstanding bond issue is reported as a cash flow from financing activities.