Only the principal portion of a mortgage payment is considered to be a cash outflow for financing activities.

Name: Only the principal portion of a mortgage payment is considered to be a cash outflow for financing activities.
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This is because the principal portion of a mortgage payment is considered a repayment of the loan, while the interest portion is considered an expense that is reflected as an adjustment to net income when calculating cash flow from operating activities.

Only the Principal Portion of a Mortgage Payment Is Considered