The repayment of the principal of a loan which had been used to finance the purchase of equipment should be reported on the statement of cash flows as a
A)cash outflow from investing activities.
B)cash outflow from operating activities.
C)cash outflow from financing activities.
D)noncash transaction in a supplemental disclosure.

Question

Quizplus · Accepted Answer

The repayment of the principal of a loan is considered a financing activity, as it relates to the funding of the company rather than its operations or investments.

The Repayment of the Principal of a Loan Which Had