The payment of interest on a note payable is a cash flow from a financing activity.

Name: The payment of interest on a note payable is a cash flow from a financing activity.
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The payment of interest on a note payable is considered a cash flow from operating activities, not from financing activities. Financing activities include transactions involving raising capital and repaying investors, such as issuing equity or debt, and repaying principal amounts on loans.

The Payment of Interest on a Note Payable Is a Cash