Cash payments for interest expense are reported in the ________ section of the statement of cash flows.The direct method is used.
A) operating activities
B) investing activities
C) financing activities
D) noncash investing and financing activities

Question

Quizplus · Accepted Answer

Cash payments for interest expense are considered an operating expense and therefore would be reported in the operating activities section of the statement of cash flows, which shows cash flows related to the company's primary operations. The direct method is used to report operating activities, where cash inflows and outflows are directly reported rather than starting with net income and adjusting for non-cash items.

Cash Payments for Interest Expense Are Reported in the ________