Question: Laurel says, I understand that operating activities are affected by changes in current asset and current liability accounts. I also know that short-term loans payable

Laurel says, "I understand that operating activities are affected by changes in current asset and current liability accounts. I also know that short-term loans payable are current liabilities. What I don't understand is why short-term loans are not always classified as operating activities. Occasionally they are classified as operating activities but mostly they are classified as financing activities." Help Laurel understand the classification of short-term loans payable?

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