If a Company Borrows Money from a Bank, the Interest

question 14

Multiple Choice

If a company borrows money from a bank, the interest paid on this loan should be reported on the statement of cash flows as a(n) :

• A) Operating activity.
• B) Financing activity.
• C) Investing activity.
• D) This is not reported in the statement of cash flows.
• E) Noncash investing and financing activity.

---

Definitions:

MMC

Maximum Material Condition: a condition of a feature which contains the maximum amount of material within the given dimensional limits, affecting the tolerance specified.

Profile Tolerances

The permissible variations in shape and dimensions of a part's profile, ensuring compliance with technical drawings.

Profile-Of-A-Surface Tolerance

A geometric dimensioning and tolerancing (GD&T) specification that controls the form, orientation, and location of surfaces within a specified tolerance zone.

All Around Symbol

A graphical symbol indicating that a geometric tolerance or feature applies to all surfaces all around the part.