Is interest part of "cash flow from operations"?

On a quiz, I said that interes t 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 IFRS, paying interest is CFO.

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 _ non operating_ 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

My pleasure.