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Gillian Tamia
on Oct 27, 2024

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The payment of interest on a note payable is a cash flow from a financing activity.

Note Payable

A written agreement where one party promises to pay another party a certain amount, usually including interest, at a future date.

Interest Payment

The amount paid by a borrower to a lender as a charge for borrowing money, typically expressed as an annual percentage of the principal.

Financing Activity

Transactions and events where cash is raised for investing in the business or repaying funds borrowed by the company, supplied through equity or debt.

  • Identify the divisions of cash flows featured in the cash flow statement.
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Lissette CastilloOct 29, 2024
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