Is it logical that interest paid is classified as a cash outflow in the Operating Activities section

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Is it logical that interest paid is classified as a cash outflow in the Operating Activities section of the statement of cash flows but that dividends paid are included in the Financing Activities section? Explain your answer.

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Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1133161646

7th Edition

Authors: Gary A. Porter, Curtis L. Norton

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Question Posted: Jan 12, 2012 03:04 AM

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Is it logical that interest paid is classified as a cash outflow in the Operating Activities section

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An argument can be made that it is inconsistent to report interest paid i...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

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