问题
单项选择题
A long-term bond is sold at a discount. In subsequent years cash flow from operations will be:
A．
| A. understated. |
B．
| B. properly stated. |
C．
| C. overstated. |
答案
参考答案：C
解析：Cash interest is only part of the interest expense. The amortization of the bond discount at maturity is charged to financing cash flow when in fact it should be charged against cash flow from operations, so CFO will be overstated.