Asked by Sonja Knezic on Apr 25, 2024
Verified
Cash payments to repay the principal amount of debt are reported as a cash outflow in the investing activities section of the statement of cash flows.
Investing Activities
Transactions involving the purchase and sale of long-term assets or investments, part of a company’s cash flow.
Cash Payments
Financial transactions involving the outflow of cash to settle obligations or purchase goods and services.
Debt Principal
The original amount of money borrowed or the remaining balance of a loan, exclusive of interest.
- Digest the information about elements and their classifications in the statement of cash flows.
- Accurately enumerate and categorize operations, financing, and investment activities.
Verified Answer
GD
Gurwinder Dhumi8 days ago
Final Answer :
False
Explanation :
Cash payments to repay the principal amount of debt are reported as a cash outflow in the financing activities section of the statement of cash flows.
Learning Objectives
- Digest the information about elements and their classifications in the statement of cash flows.
- Accurately enumerate and categorize operations, financing, and investment activities.
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