204k views
4 votes
Which cashflow activity does the payment of interest on bonds payable classify as?

1 Answer

2 votes

Final answer:

The payment of interest on bonds payable classifies as an operating cashflow activity.

Step-by-step explanation:

The payment of interest on bonds payable classifies as an operating cashflow activity. Operating cashflows involve the day-to-day activities of a business, such as sales, purchases, and payments to suppliers and employees. When a company pays interest on its bonds, it is part of the normal operations of the business.

User Garric
by
8.9k points