The Payment of Interest on a Loan Is Considered a ________

question 31

Multiple Choice

The payment of interest on a loan is considered a ________ on a statement of cash flows prepared using the direct method.

• A) cash outflow for operating activities
• B) cash outflow for investing activities
• C) cash outflow for financing activities
• D) non-cash activity

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Definitions:

Sickle-cell Anemia

A genetic blood disorder characterized by red blood cells that assume an abnormal, rigid, sickle shape, leading to various health complications.

African-Americans

A term referring to citizens or residents of the United States who have origins in any of the black populations of Africa.

Genotype

The genetic makeup of an organism, comprising all of its genes and contributing to its phenotype, or observable characteristics.

Phenotype

The set of observable characteristics or traits of an organism, resulting from the interaction of its genotype with the environment.