In a statement of cash flows, interest payments to lenders should be classified as cash outflows for
A)operating activities.
B)financing activities.
C)investing activities.
D)lending activities.
E)exchange transactions.

Question

Quizplus · Accepted Answer

Interest payments to lenders are typically classified as cash outflows for operating activities in a statement of cash flows. This classification reflects the fact that interest payments are considered part of the day-to-day operations of a business.

In a Statement of Cash Flows, Interest Payments to Lenders