A private NFP organization makes a cash payment for interest on its long-term loans. On the organization's statement of cash flows, the payment appears in which section?

Question

Quizplus · Accepted Answer

Interest payments, even for a private not-for-profit organization, are considered operating activities because they relate to the entity's primary revenue-producing activities and are necessary for its day-to-day functions.

A Private NFP Organization Makes a Cash Payment for Interest