Is interest part of "cash flow from operations"?

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mlwl8521

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On a quiz, I said that interest is not part of “cash flow from operations” because it should be part of cash flow from financing activities or investment activities. For example: if you are borrowing money to buy a new machine or if paying interest to your bondholders.
How did I get this wrong?
 
Under US GAAP, interest paid is classified as CFO; under IFRS, interest paid can be classified as CFF or CFO.
Note the weirdness of US GAAP: interest expense is a nonoperating expense on the income statement, but interest paid is an operating cash flow.
It’s stupid.
 
Right, that’s what tripped me up on - I wrongfully assumed the cashflow followed the logic of the income statement (like you said, where interest doesn’t count as an operating expense)
thanks guys
 
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