The Amortization of a Premium on Bonds Payable

Multiple Choice

The amortization of a premium on bonds payable:

A) has no effect on the cash payments for interest reported in the operating activities section of the statement of cash flows
B) increases the cash payments for interest reported in the operating activities section of the statement of cash flows
C) decreases the cash payments for interest reported in the operating activities section of the statement of cash flows
D) is reported in the financing activities section of the statement of cash flows