A payment of interest on a loan would be considered a:
A) cash outflow from operating activities.
B) cash outflow from investing activities.
C) cash outflow from financing activities.
D) noncash activity.

Question

Quizplus · Accepted Answer

Interest payments on a loan are considered operating activities because they relate to the core operations of a business, affecting its net income.

A Payment of Interest on a Loan Would Be Considered