Question: Cailey Corporation has a cash flow problem. They have bonds due before the end of the fiscal year. They will need to sell more bonds

Cailey Corporation has a cash flow problem. They have bonds due before the end of the fiscal year. They will need to sell more bonds to pay the bonds due. Ida, the controller, understands that many investors consider the cash flow statement to be the key statement that indicates the company's future value. She has decided to delay the payment of the bonds until after the end of the fiscal year. This will show a higher balance in cash since the bonds will not be paid. There will be no indication in the financial statements that she has defaulted on the bonds. It is Ida's plan to issue additional bonds after the close of the fiscal year to pay off the current bonds. However, she will need to record the interest paid in the current fiscal year. Are Ida's actions acceptable accounting practices?

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