Which transaction can be viewed as either an operating transaction or a financing transaction?
A) Receipt of cash from customers
B) Payment of dividends
C) Sale of equipment
D) Payment of interest to a lender

Question

Quizplus · Accepted Answer

Payment of interest to a lender can be viewed as either an operating transaction, because it's a cost of borrowing that affects net income, or a financing transaction, because it's related to the repayment of debt.

Which Transaction Can Be Viewed as Either an Operating Transaction