English, asked by UniBoy, 1 month ago

Why are payments and receipts of interest classified as operating activities rather than as financing or investing activities?

Answers

Answered by ITZMEGOVARDHANREDDY
1

Answer:

would appear as operating activity because interest payments impact net income as an expense. It would appear as investing activity because principal collections impact noncurrent assets. ... It would appear as operating activity because interest received impacts net income as revenue.

Similar questions