Interest Expense Appears in the Operations Section of the Statement

question 77

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 the options; interest expense appears in the financing section of the statement of cash flows.

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Definitions:

Operating System

The software that manages hardware and software resources on a computer, providing common services for computer programs.

Running Apps

Applications that are currently active and executing tasks in a computing device's memory.

Memory

An electronic function in computers and digital devices that stores data and program instructions for future use.

Operating System

The software that manages computer hardware, software resources, and provides common services for computer programs.