Interest Expense Appears in the Operations Section of the Statement

question 69

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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Definitions:

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A set of criteria or instructions designed to direct behavior, actions, or decision-making.

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Anything that stifles creativity or prevents good ideas from being expressed or considered.

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Assumption Smashing

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