Ask Question
BusinessBusiness
23 September, 23:28

In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for a. operating activities. b. borrowing activities. c. lending activities. d. financing activities.

+4
Answers (1)
  1. 24 September, 02:09
    0
    The correct answer is letter "A": operating activities.

    Explanation:

    Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.

    When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for a. operating ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What is the relationship between decisions and trade-offs?
Answers (1)
What Is Marketing? fast
Answers (1)
What is the act of unlawful taking, carrying, leading, or riding away of property from the possession of another called?
Answers (1)
Jon needed to purchase new tires for his SUV. He consulted Consumer Reports to see how the various brands were rated. Jon consulted which type of information source?
Answers (1)
Under what circumstances might a long-term strategic alliance with a key supplier enable a company to capture most of the benefits associated with vertical integration, without bearing the associated risks and costs?
Answers (1)
New Questions in Business
An individual stockholder is entitled to receive any dividends declared on stock owned, provided the stock is held on the date of
Answers (1)
The Cost-Benefit Principle indicates that an action should be taken if:A. its total benefits exceed its total costs. B. its average benefits exceed its average costs. C. its net benefit (benefit minus cost) is zero. D.
Answers (1)
On May 1, Ace Electronics ordered office equipment. The equipment was delivered to Ace on May 15, and Ace agreed to pay for it by the end of the month. Ace paid for the equipment on May 31.
Answers (1)
According to the path-goal theory of leadership: Select one: a. great leaders are born, not made. b. the best leaders possess high levels of emotional intelligence. c.
Answers (2)
The most critical aspect of a wan services contract is how the service provider supplies troubleshooting, network management, and security management services.
Answers (1)
Home » Business » In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for a. operating activities. b. borrowing activities. c. lending activities. d. financing activities.
Sign Up Forgot Password?