Question

Which cashflow activity does the payment of interest on bonds payable classify as?

Answer 1

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.