In preparing a statement of cash flows, the conversion of bonds into common shares will be reported in the

A) financing activities section.
B) notes to the financial statements.
C) investing activities section.
D) shareholders' equity section.

Bonds

Fixed-income investment products representing loans made by an investor to a borrower, typically corporate or governmental, which borrows the funds for a defined period at a variable or fixed interest rate.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits.

Financing Activities

Activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.