How will the amount of cash paid for interest expense be computed for a company that uses the direct method to prepare the statement of cash flows?

Question

Quizplus · Accepted Answer

The cash paid for interest is calculated by adjusting the interest expense for the change in interest payable. If interest payable increases, it means not all interest expense was paid in cash, so the change is added to the interest expense to find the cash paid.

How Will the Amount of Cash Paid for Interest Expense