It is considered proper and ethical to classify cash paid for interest as a financing activity on the statement of cash flows.

Name: It is considered proper and ethical to classify cash paid for interest as a financing activity on the statement of cash flows.
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Question

Quizplus · Accepted Answer

Interest paid is typically classified as an operating activity on the statement of cash flows, as it is considered part of the entity's ongoing business operations.

It Is Considered Proper and Ethical to Classify Cash Paid