On a statement of cash flows prepared with the indirect method,financing activities do NOT include:
A)payment of principal amounts of long-term debt.
B)payment of interest on long-term debt.
C)payment of dividends.
D)sale of treasury stock.

Question

Quizplus · Accepted Answer

Interest payments are considered operating activities, not financing activities, because they relate to the cost of borrowing money rather than the transactions with owners or the repayment of principal amounts of long-term financing.

On a Statement of Cash Flows Prepared with the Indirect