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Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
How should Indirect borrowing activity (using accounts payable) be classified?
Answer
Operating activity.

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
How should Indirect borrowing activity (using accounts payable) be classified?
Answer
?

Tags
#cfa-level-1 #corporate-finance #understanding-cashflow-statements
Question
How should Indirect borrowing activity (using accounts payable) be classified?
Answer
Operating activity.
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Subject 1. Classification of Cash Flows and Non-Cash Activities
vidends do not appear on the income statement, and thus are not classified as operating activities. All income taxes are considered operating activities, even if some arise from financing or investing. <span>Indirect borrowing using accounts payable is not considered a financing activity - such borrowing would be classified as an operating activity. Investing Activities These include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property,

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