Under operating activities on a cash flow statement, amortization of financing fees is linked from the:
A)CIM
B)Balance sheet
C)Income statement
D)Management case

Question

Quizplus · Accepted Answer

Amortization of financing fees is typically linked from the Income Statement because it is an expense that reduces net income but does not involve an actual cash outlay, thus it is added back to net income in the operating activities section of the cash flow statement to adjust for non-cash expenses.

Under Operating Activities on a Cash Flow Statement, Amortization of Financing