Ingles Corp., a private company reporting under ASPE, engaged in the following transactions. For each transaction, indicate where, if at all, it would be classified on the statement of cash flows. Assume the indirect method is used. Ingles Corp. experienced a payment of interest on a long-term bank loan in the
A) operating activities section.
B) investing activities section.
C) financing activities section.
D) does not represent a cash flow.

Question

Quizplus · Accepted Answer

Under ASPE, interest paid is classified as an operating activity in the statement of cash flows when using the indirect method.