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PART 1: pay back previously borrowed money is an operating activity or financing activity

  • 1.  PART 1: pay back previously borrowed money is an operating activity or financing activity

    Posted 06-24-2023 04:23 AM

    Hi all,

    .On Gleim book, Page 41 and 42, it states that Payments of interest on debt is an operating activity while cash repayment of amounts borrowed is financing activity. So what is the line here? paying back interest is operating while pay back principle is financing activity? 



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    Wei Zhong
    Analyst
    Naarden
    Netherlands
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