Question

A not-for-profit hospital pays $150,000 interest on its bonds outstanding. The bonds were issued to finance construction of a new hospital wing. In its statement of cash flow, the interest should be shown as a cash outflow from
a. noncapital financing activities
b. capital financing activities
c. operating activities
d. investing activities

Answer 1

Answer:

c. operating activities

Explanation:

Operating activities -

It is the activity of the functions of the business which is directly linked via providing the respective services and goods in the market , is known as operating activities .

It is the core business activity of the company , like the marketing , distributing , selling the services or goods and manufacturing .

It is responsible for the majority of the cash flow within the company .

Hence , from the question , the correct term according to the given data is c. operating activities .