A company loaned $1,000,000 with interest at 7% to another company.The interest revenue from this loan would be reported on the statement of cash flows as
A)cash inflow from operating activities.
B)cash inflow from investing activities.
C)cash inflow from financing activities.
D)noncash transaction in a supplemental disclosure.

Question

Quizplus · Accepted Answer

The interest revenue from the loan is a result of the company's normal operations and therefore falls under operating activities in the statement of cash flows.

A Company Loaned $1,000,000 with Interest at 7% to Another