A company loaned $1,000,0000 with interest at 7% to another company. The interest revenue from this loan would be reported on the statement of cash flows as
A) cash inflows from operating activities.
B) cash inflows from investing activities.
C) cash inflows from financing activities.
D) noncash transaction in a supplemental disclosure.

Question

Quizplus · Accepted Answer

Interest revenue is considered an operating activity, so the cash inflows from interest would be reported as cash inflows from operating activities on the statement of cash flows.

A Company Loaned $1,000,0000 with Interest at 7% to Another