Question

Which of the following statement is false? Group of answer choices Financing activities include the obtaining of cash from issuing debt and repaying the amounts borrowed. Statement of cash flows help investors assess the entity’s ability to generate future cash flows. Noncash investing and financing activities should not be included in the body of the statement of cash flows. Interest payment on bonds payable is a cash outflow from financing activities.

Answer 1

Answer:

Interest payment on bonds payable is a cash outflow from financing activities.

Explanation:

The only statement which is false from the list is : Interest payment on bonds payable is a cash outflow from financing activities.

Interest payment on bonds payable is an expense in the income statement used to determine the income for the year. Net Income falls under the Cash flows from Operating Activities.