Interest Paid on Debt Would Be Reported on a Statement

question 55

Multiple Choice

Interest paid on debt would be reported on a statement of cash flows under:

• A)the operating activities.
• B)the financing activities.
• C)the investing activities.
• D)none of these categories, because interest paid on debt would not be reported on a statement of cash flows.

---

Definitions:

CPI

The Consumer Price Index is an indicator that calculates the weighted average price of a selection of consumer goods and services, including food, medical care, and transportation.

Real Wages

The purchasing power of wages, taking into account inflation, reflecting the amount of goods and services that can be bought with the wages earned.

Minimum Wage

The lowest legally allowable pay per hour for workers.

Real Wage Rate

The purchasing power of wages when adjusted for inflation, indicating the quantity of goods and services that can be bought.