Royer Corporation engaged in this transaction:
Paid interest on note.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Financing activities section
B) Schedule of noncash investing and financing transactions
C) Investing activities section
D) Operating activities section

Question

Royer Corporation engaged in this transaction:
 Paid interest on note.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Financing activities section
B) Schedule of noncash investing and financing transactions
C) Investing activities section
D) Operating activities section

Quizplus · Accepted Answer

Paying interest on a note is considered an operating activity as it relates to the cost of borrowing and is part of the company's regular business operations.

Royer Corporation Engaged in This Transaction