If a company borrows money from a bank, the interest paid on this loan should be reported

Fantastic news! We've Found the answer you've been seeking!

Question:

If a company borrows money from a bank, the interest paid on this loan should be reported on the statement of cash flows as a(n):

A: Financing activity.

B: Noncash investing and financing activity.

C: Investing activity.

D: None of these. This is not reported in the statement of cash flows.

E: Operating activity.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0324312140

16th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

See More Books

Posted Date: Mar 30, 2022 07:38 AM

See More Questions

The Investing Activities section of the statement of cash flows of Archer Daniels Midland Company (ADM), seller of agricultural commodities and products, follows. Based on the information given,...
The operating activities section of the statement of cash flows for PepsiCo, Inc., owner of the Pepsi beverage brand, is shown as follows: a. Why are impairment and restructuring charges added to the...
A forecasted statement of cash flows allows management to plan ahead. What information is contained in the statement that can be used for planning purposes?
The classic iPod is 10.5 millimeters thick. Suppose that the actual thickness T of any particular iPod has a maximum error tolerance that is less than 0.05 millimeter. (a) Write an absolute value...
Murphy, a firm that produces ping- pong paddles, expects to incur the following costs in its manufacturing process. The ping- pong paddles it manufactures consist of a wooden paddle, a handle, and a...
Why is the tendency strong for candidates to choose positions in the middle of the distribution of voter preferences?
Estimate the wind velocity necessary to knock over a $20-\mathrm{lb}$ garbage can that is $3 \mathrm{ft}$ tall and $2 \mathrm{ft}$ in diameter. List your assumptions.
The following selected transactions were completed by Tropical Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 2. Sold merchandise on account,...
What increases brain activity and how does it relate to what is consciousness? What leads to the loss of consciousness? illustrate the process of consciousness? is consciousness gradual? Explain. How...
VF Corporation is an apparel company that owns recognizable brands like Timberland, Vans, Reef, and 7 For All Mankind. Exhibit 5.18 and 5.19 present balance sheets and income statements,...
Create the keynotes of the given below text in your own words. GICS-IC PHYSICS-IC 10 cm P.2.8 Explain why an air bubble in water rises from bottom to top and grows in size? We know that fluid moves...
True Or False The primary question in a negligence cause of action based on lack of informed consent is whether the risks that are not disclosed were material risks.
What communications does the attorney-client privilege protect? a. How is this privilege waived? b. Who is subject to this privilege? c. What should legal assistants do to preserve this privilege?
What is the relationship between deceit and misrepresentation?
Emergency is a defense a. if death is imminent and treatment is absolutely necessary for the patients survival. b. only if an emergency actually exists. c. as long as the emergency was not created by...
True Or False Legal assistants should make sure that client conferences are conducted in places where privacy is assured.
2. Below are bank bid and ask rates. Bid rate of $0.018554/Philippine Peso Ask rate of $0.019614/Philippine Peso Bid rate of $0.031160/Taiwan New Dollar Ask rate of $0.033160/Taiwan New Dollar Bid...
General Electric Capital, a division of General Electric, uses long-term debt extensively. In a recent year, GE Capital issued $11 billion in long-term debt to investors, then within days filed legal...
Stratco Corporation computed a pretax financial income of $40,000 for the first year of its operations ended December 31, 2008. Included in financial income was $50,000 of nontaxable revenue, $20,000...
The following independent situations describe facts concerning the ownership of various assets. (a) Dewey Company purchased a tooling machine in 1998 for $60,000. The machine was being depreciated on...
From the following information for each of three independent cases, prepare the pension note disclosure that outlines the items that go into the computation of the net prepaid/ accrued pension cost...
The Hagen-Poiseuille equation (Equation 6.11) describes the laminar flow of a Newtonian fluid in a tube. Since a Newtonian fluid is defined by the relation $\tau=\mu \dot{\gamma}$, rearrange the...
Derive the relation between the friction factor and Reynolds number in turbulent flow for smooth pipe (Equation 6.34), starting with the von Karman equation for the velocity distribution in the...
Evaluate the kinetic energy correction factor $\alpha$ in the Bernoulli equation for turbulent flow assuming the $1 / 7$ power law velocity profile (Equation 6.36) is valid. Repeat this for laminar...

If a company borrows money from a bank, the interest paid on this loan should be reported

Question:

Expert Answer:

E Operating activity Operating activities are all the things a company does to bring its products an... View the full answer

Intermediate Accounting

Students also viewed these accounting questions