The final cash payment of the face value of a noninterest-bearing note would appear on the statement of cash flows in the:
A)operating activities section
B)investing activities section
C)financing activities section
D)operating and financing activities sections

Question

Quizplus · Accepted Answer

The final cash payment of the face value of a noninterest-bearing note is a financing activity, as it represents the repayment of funds that were originally borrowed. The financing activities section of the statement of cash flows shows the cash inflows and outflows related to the issuance and repayment of debt, including noninterest-bearing notes.

The Final Cash Payment of the Face Value of a Noninterest-Bearing