Respuesta :
The statement is False. Interest paid is typically considered income from operating activities.
If you take a look at what interest-bearing loans are for, it's going to be more appropriate to classify them as a financing activity. this is applicable if the loan isn't used as an integral a part of the company's cash management function. Since most companies use the indirect method of preparing the statement of money flows (or statement of money flows), the expense of the business are going to be limited to the online profit of the business, which is that the first amount reported in cash flows from operating activities. paid amount of money paid by the corporate to the creditor. it's going to be higher or less than the disbursal on the record. Only interest paid affects income, not disbursement. Cash paid in interest are present under "cash ensue operating activities".
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