Joyner Corporation paid interest on long-term debt. This interest payment should be classified on Joyner's statement of cash flows as a(an)
A) operating cash inflow.
B) operating cash outflow.
C) financing cash inflow.
D) financing cash outflow.
E) investing cash outflow.

Question

Quizplus · Accepted Answer

Interest payments on long-term debt are typically classified as operating cash outflows in the statement of cash flows, reflecting the cost of borrowing as part of the company's operational expenses.

Joyner Corporation Paid Interest on Long-Term Debt