Why is Interest Expense Included in the Operating Activities Section of the Cash Flow Statement?

Question added by Asim Gulzar , Assistant Accountant , M/s Jeea Textiles Pvt.Ltd
Date Posted: 2014/09/11

Upvote (2) Views (4) Followers (3) Answers (1) Report Question

by aziz urrehman , key account executive , alkhair group of companies foam manufacturing

The answer is simple we include it becuase this interest is paid on one year loan or less than one year.

For Mid and long term we include it in finance activities.

How are the Cash Flow Statement and Balance Sheet related?
Top Answer: a. The ending cash balance on the Balance Sheet is transferred to the current period Cash Flow Statement& ... See More

Answers (18)
True or False: Cash flow statement is A summary of the actual incomings and outgoings of cash in a firm?
Top Answer: True.................................. See More

Answers (56)
What is the difference between income statement and cash flow statement?
Top Answer: Income statement represents the financial performace of an organization for a specific period. And cash f ... See More

Answers (16)
Why are increases in accounts receivable a cash reduction on the cash flow statement?
Top Answer: Increase in accounts receivable means decrease in cash receipts or inflows so thats why cash flow stateme ... See More

Answers (3)

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.