Cash outflows for interest on line of credit will be shown:
A) on the cash receipts budget.
B) in the investing activity section of the cash summary budget.
C) on the summary cash budget.
D) on the selling and administrative expense budget

Question

Quizplus · Accepted Answer

Interest on a line of credit is considered a financing activity, and its cash outflows are reflected in the summary cash budget, which captures all cash inflows and outflows, including those from operating, investing, and financing activities.

Cash Outflows for Interest on Line of Credit Will Be