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Levart [38]
4 years ago
8

In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for a. oper

ating activities. b. borrowing activities. c. lending activities. d. financing activities.
Business
1 answer:
Sonbull [250]4 years ago
3 0

Answer:

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.

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uysha [10]

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Explanation:

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Answer:

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Explanation:

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D. to tightly synchronize a​ firm's production with its​ customers' demand: for example in a seasonal demand, There are certain months when the demand exceeds the production capacity. In theis case, in the lower season months, the company will be increasing the inventory in order to meet the demand when the high season comes.

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yanalaym [24]

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