If a Company Paid Interest During the Year on Amounts

question 60

Multiple Choice

If a company paid interest during the year on amounts it had borrowed, how would it be classified on the cash flow statement?

• A)As a cash flows from operations.
• B)As a cash flows from financing activities.
• C)Both of the above are correct
• D)Neither of the above are correct

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Definitions:

Charity

The act of giving help, typically in the form of money or services, to those in need.

Social Acceptance

The experience or state of being approved, valued, and included by others in a social context.

Independent Retailers

Small, privately-owned retail businesses that are not part of a larger retail chain or franchise.

Retail Establishments

Stores and businesses that sell goods directly to consumers.