Home › Bihar Board Class 12 (Commerce) › Accountancy › Cash Flow Statement › Repayment of debt principal, including capital l…
Repayment of debt principal, including capital leases, is classed under which activity?
AOperating
BFinancing
CInvesting
DNon-cash
Answer & Solution
Correct answer: B. Financing
Repaying borrowings is a cash flow between lenders and the company, so it is a financing activity.
Related questions
Which transaction is a non-cash financing activity?Payments to suppliers for goods and services belong to which activity?Which payment is an example of an investing activity?In the indirect method, a rise in a liability is treated how?The indirect method of preparing a cash flow statement starts from which item?Why can a firm with a profit still be in financial trouble, as the cash flow statement shoWhich item is left out of a cash flow statement as it involves no cash?Which item is added back to net income to reach cash flow from operations?