The repayment of the principal of a loan which had been used to finance the purchase of equipment should be reported on the statement of cash flows as a:
A)cash outflow from investing activities.
B)cash outflow from operating activities.
C)cash outflow from financing activities.
D)noncash investing and financing activities in a supplemental disclosure.

Question

Quizplus · Accepted Answer

Cash flows from financing activities include exchanges of cash with stockholders and cash exchanges with lenders (for principal on loans).

The Repayment of the Principal of a Loan Which Had