Royer Corporation engaged in this transaction: Received interest on an investment in a long-term 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) Does not represent a cash flow
C) Operating activities section
D) Investing activities section

Question

Quizplus · Accepted Answer

Interest received on an investment is considered an operating activity on the statement of cash flows, as it relates to the company's primary revenue-generating activities.

Royer Corporation Engaged in This Transaction: Received Interest on an Investment