The gain or loss from retirement of debt is reported under cash flows from operating activities on the statement of cash flows using the indirect method. a. True
b. False

a. True

Explanation:

When we have to adjust and converted the net income into the cash basis the gain is subtracted and losses are added to the net income in the operating activities section of the cash flow statement

Since there is the gain or loss from the retirement of the bonds so the same should be deducted or added to the net income as the case may be

Therefore the correct option is a.

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