When calculating net cash flow from financing activities,a company must convert interest expense to cash payments for interest.
BT: Comprehension

Question

Quizplus · Accepted Answer

This statement is false. The conversion of interest expense to cash payments only applies to the calculation of net cash flow from operating activities, not financing activities. Net cash flow from financing activities would include cash inflows and outflows related to obtaining or repaying capital, such as issuing or repurchasing stock, or taking out or repaying loans.

When Calculating Net Cash Flow from Financing Activities,a Company Must