Interest paid on debt would be reported on a statement of cash flows,prepared by using the direct method,under:
A)financing activities.
B)investing activities.
C)operating activities.
D)noncash activities.

Question

Quizplus · Accepted Answer

Interest paid on debt is considered an operating activity because it is related to the core operations of a business. The direct method of preparing a statement of cash flows involves listing all cash receipts and payments, including those related to interest, under operating activities.

Interest Paid on Debt Would Be Reported on a Statement