In a statement of cash flows, interest paid to creditors is classified as a cash flow from:
A) Operating activities
B) Trading activities
C) Financing activities
D) Investing activities

Question

Quizplus · Accepted Answer

Interest paid to creditors is classified as a cash flow from operating activities because it is considered an expense related to the core business operations of a company.

In a Statement of Cash Flows, Interest Paid to Creditors