Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
When a company pays interest on
a. operating
b. financing
c. investing
Expert Solution
Step 1
A cash flow statement is a financial statement that summarizes the cash and cash equivalents of company. It has three sections
a. operating
b. financing
c. investing
Operating activities: It is used to calculate the cash spent or earned from daily business activities
Financing activities: It is used to calculate the cash spent or earned through financing of a business with loans, owner's equity etc.,
Investing activities: It calculates the cash earned or spent from investments made by the business such as purchase or sale of assets, investing in other companies etc.,
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