Interest Payments Are Considered A(n) _________ Cash Flow

question 57

Multiple Choice

Interest payments are considered a(n) _________ cash flow.

• A) operating
• B) investment
• C) pro forma
• D) financing
• E) sales

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Definitions:

Income Summary

An account used in the closing process that aggregates all income and expenses to determine the net income or loss for the period.

Merchandise Inventory

The goods a company has available for sale to customers, considered a current asset on the balance sheet.

Adjustments

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.