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Forums › ACCA Forums › General ACCA Forums › Cashflow question
I need assistance with a question. When preparing a cashflow what figure is used under Cashflows from financing for repayment of borrowings? Do you use the full amount paid toward the loan for the year or only the principle payment? Kindly assist.
See the proforma statement in FA Chapter 14 – Interest expense and interest paid are dealt with under operating activities – so it is only the principal that is included under financing activities.
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