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ar-abdulshafi
May 3, 2022
Question

Why do QB consider short-term loan as an "operating" activity in CFS?

  • May 3, 2022
  • 3 replies
  • 37 views

Hi,

I got this reply from one of QB's  respected agent on a question about short-term loans found in cash flow statement among "operating" activities instead of "financing" ones. Any further explanation about this QB rule regarding the loans.

 

Thanks

    3 replies

    Rustler
    Rustler
    Level 15
    May 4, 2022

    The only thing I can think of is that "operations" is classified as short term, a year or less

    ar-abdulshafiAuthor
    May 5, 2022

    Thanks for replying. 

    However, according mg knowledge, standard CFS rules state that ALL loans - short or long term - are reported under "financing" activity section, NOT "operating" one.

     Kindly read this:

    https://www.accountingcoach.com/blog/bank-loans-on-cash-flow-statement

     

    And my question is about real situation I found in my cash flow statement in QB online (3 short term loans are recorded in "operating" section!) 

     

    Still I am waiting someone to explain why this occurred jn QB CFS despite the 3 short-term loans were recorded properly as loan payable (current liabilities account)

     

    Thank you one again for your participation in this conversation.

    JelB
    March 25, 2023

    My observation is that you'd have to make it long term in the settings. Then I selected Other for the tax (which I'm concerned with), but I totally agree with you. 

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