Interest Expense Appears in the Operations Section of the Cash-Flow

question 26

Multiple Choice

Interest expense appears in the operations section of the cash-flow statement 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 cash-flow statement

---

Definitions:

Conformity

The process of adjusting one's behavior or thinking to match those of other people or a group standard.

Compliance

The act of conforming to a request or demand from others, often used in a psychological context to describe when a person changes their behavior in response to an explicit or implicit request.

Obedience

The act of following orders or directions from those in authority.

Stereotype

A commonly accepted yet simplified and rigid perception or conception of a specific kind of individual or object.