Interest payments to creditors are reported in a statement of cash flows as:
A) An investing activity.
B) A borrowing activity.
C) A financing activity.
D) An operating activity.

Question

Quizplus · Accepted Answer

Interest payments to creditors are considered part of the day-to-day operations of a business and are therefore reported in the statement of cash flows as an operating activity.

Interest Payments to Creditors Are Reported in a Statement of Cash