The payment of principal amounts (excluding interest) to creditors would be reported on a statement of cash flows under the:
A) financing activities
B) investing activities
C) operating activities
D) either investing activities or financing activities

Question

Quizplus · Accepted Answer

The repayment of principal amounts (excluding interest) to creditors would be reported as a cash outflow under financing activities. Financing activities involve obtaining funds from owners and providing them a return on their investment, as well as obtaining funds from creditors and repaying them.

The Payment of Principal Amounts (Excluding Interest) to Creditors Would