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Statement of Cash Flow

?

Interest paid to bondholders is reported in connection with a statement of cash flows as:

An operating activity.An investing activityA noncash activity.A financing activity.

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Correct answer: (A)

An operating activity.

Since interest expense is reported in the income statement under GAAP, it is reported in the operating activities section of the statement of cash flows.

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