The cash flow to creditors includes the cash:

A) Received by the firm when payments are paid to suppliers.
B) Outflow of the firm when new debt is acquired.
C) Outflow when interest is paid on outstanding debt.
D) Inflow when accounts payable decreases.
E) Received when long-term debt is paid off.

Cash Flow To Creditors

The sum of money paid to creditors during a period, which includes both interest payments and repayments of principal.

Interest

The cost incurred for the benefit of borrowing cash, often articulated as an annual percentage rate.

Long-Term Debt

Long-term debt is borrowing that is due for repayment more than one year in the future, often used for significant projects or investments.