Under the direct method, paying and collecting interest on loans are:

Name: Under the direct method, paying and collecting interest on loans are:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Under the direct method of preparing the cash flow statement, paying and collecting interest on loans are considered operating activities. This is because they relate to the core operations of the business, such as receiving interest on loans given (which is part of operating income) and paying interest on loans taken (which is part of operating expenses).

Under the Direct Method, Paying and Collecting Interest on Loans