A Payment of Interest on a Loan Would Be Considered

question 49

Multiple Choice

A payment of interest on a loan would be considered a

• A)cash outflow from investing activities.
• B)cash outflow from operating activities.
• C)cash outflow from financing activities.
• D)cash outflow from depreciation.

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Definitions:

Dry-Cleaning Business

A service-oriented business that cleans clothes, textiles, and garments using a chemical solvent rather than water.

Pounds

A unit of currency used in the United Kingdom and other territories, often symbolized as £.

Spreading Effect

The financial strategy of distributing investments across various assets to reduce risk and potentially increase returns.

Fixed Cost

Costs that do not vary with the level of output or activity.