Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. (Choices may be used more than once.)
-paid interest on a capital lease

Question

Quizplus · Accepted Answer

Interest payments on a capital lease are considered operating expenses and are reported as outflows from operating activities when using the direct method on the statement of cash flows.

Use the Following Codes to Indicate How the Cash Flow