Interest expense is shown as:
A)an operating activity on the statement of cash flows and a non-operating item on the income statement.
B)an operating item on the income statement and an investing activity on the statement of cash flows.
C)an operating item on the income statement and a financing activity on the statement of cash flows.
D)a financing activity on the statement of cash flows and an operating item on the income statement.

Question

Quizplus · Accepted Answer

Even though interest revenue and interest expense are reported below operating income on the income statement, they are reported as operating activities on the statement of cash flows.

Interest Expense Is Shown As