Interest expense paid in cash is a cash outflow from operating activities on the statement of...

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Interest expense paid in cash is a cash outflow from operating activities on the statement of cash flows prepared under the i

business accounting

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Answer 1

Answer #1

Answer

The interest paid in cash in cash flow from operating income under indirect methodpart of net income -

True

Explanation -

Interest expense is part of cash flow from operating income under indirect method. It is considered part of net income under indirect method of cash flow. The net income is taken before tax and interest but then the net income is reduced by interest paid in cash flow from operating income.

So the given statement is true.

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Answer 2

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