If a company borrows money from a bank,the interest paid on this loan should be reported on the statement of cash flows as a(n):
A)Operating activity.
B)Investing activity.
C)Financing activity.
D)Noncash investing and financing activity.
E)This is not reported in the statement of cash flows.

Question

Quizplus · Accepted Answer

Interest paid on a loan is considered an operating activity because it is a cost of doing business and is reported in the operating activities section of the statement of cash flows.

If a Company Borrows Money from a Bank,the Interest Paid