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When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.

A. Operating activities, financing activities

B. Financing activities, investing activities

C. Investing activities, operating activities

D. None of the above

Related Questions on Management Accounting Test Questions

Time value of money indicates that

A. A unit of money obtained today is worth more than a unit of money obtained in future

B. A unit of money obtained today is worth less than a unit of money obtained in future

C. There is no difference in the value of money obtained today and tomorrow

D. None of the above