In 2015, G Co Repaid $45,000 to the Bank on a Mortgage

question 60

Multiple Choice

In 2015, G Co repaid $45,000 to the bank on a mortgage loan. $35,000 was interest on the mortgage and $10,000 was repayment of the principal. The repayment would appear in the statement of cash flows as:

• A)operating outflow $45,000.
• B)operating outflow $35,000; investing outflow $10,000.
• C)financing inflow $45,000.
• D)operating outflow $35,000; financing outflow $10,000.

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