How Are Cash Receipts from Interest on a Note Receivable

question 32

Multiple Choice

How are cash receipts from interest on a note receivable classified on a statement of cash flows prepared using the direct method?

• A)Operating activity
• B)Investing activity
• C)Financing activity
• D)Noncash financing and investing activity

---

Definitions:

Reverse Logistics

The process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal, including returns management and recycling.

Hewlett-Packard

An American multinational information technology company known for its wide range of hardware components as well as software and related services.

Electronic Merchandise

Goods that are sold and delivered digitally, often via the internet, including software, music, and e-books.

Recyclable Materials

are substances or objects that can be processed and used again, reducing waste and the consumption of fresh raw materials.