Interest Expense Appears in the Operations Section of the Statement

question 57

Multiple Choice

Interest expense appears in the operations section of the statement of cash flows because:

• A)firms cannot operate without incurring interest expense.
• B)its payment is not within managerial discretion.
• C)it is paid to finance a firm's inventory.
• D)None of these; interest expense appears in the financing section of the statement of cash flows.

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