Under USGAAP, the Statement of Cash Flows Classifies Cash Expenditures for for Interest

question 119

Multiple Choice

Under U.S.GAAP, the statement of cash flows classifies cash expenditures for interest expense as a(n) _____ activity and classifies cash expenditures to redeem debt as a(n) _____ activity.

• A)financing; financing
• B)financing: operating
• C)operating; investing
• D)operating; operating
• E)operating; financing

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Definitions:

Proportion

A part, share, or number considered in comparative relation to a whole.

Ratio

A quantitative relationship between two numbers showing how many times one value contains or is contained within the other.

Fluid Ounce

A unit of volume used primarily in the United States to measure liquids, equivalent to approximately 29.57 milliliters.

Fl Oz

Fl Oz stands for fluid ounce, a unit of volume used to measure liquids, particularly in the United States.