- CFA Exams
- 2021 CFA Level I Exam
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 28. Non-current (Long-term) Liabilities
- Subject 3. Derecognition of Debt
CFA Practice Question
Which of the following would not appear in the operating activities section of the statement of cash flows?
B. Cash payments to employees for salaries, wages, benefits, etc.
C. Cash payments for income taxes
D. Cash payments made on borrowings (repaying the amounts borrowed)
A. Cash collected from customers for goods and services
B. Cash payments to employees for salaries, wages, benefits, etc.
C. Cash payments for income taxes
D. Cash payments made on borrowings (repaying the amounts borrowed)
Correct Answer: D
Cash transactions relating to a firm's own debt or equity are classified as financing activities, according to SFAS No. 95. Note that D does not include interest payments!
User Contributed Comments 2
User | Comment |
---|---|
bravoshieh | D does not include interest payments! |
Freddie33 | What's this got to do with the chapter? |