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Question:
Under U.S. GAAP, which of the following statements about the financial statement effects of issuing bonds is least accurate ?
A
Payment of debt at maturity decreases cash flow from operations by the face value of the debt.
explanation
Issuing debt results in a cash inflow from financing. Payment of debt at maturity has no effect on cash flow from operations but decreases cash flow from financing by the face value of the debt.
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