Question

When using the indirect method, which of the following would be included in the net cash flows from operating activities section of a cash flow statement? A. Sales of plant, property and equipment B. Making loans and paying out interest C. Payment of interest and expenses D. Issuing bonds and notes

Answer 1

the answer for this question is: C. Payment of interest and expenses
In reporting cash flow, an indirect method will use accrual method to present cash from the operation on the cash flow statement
Which means that the rate of interest and expense will be added together over period of time.