GAAP requires that the Statement of Cash flows (SCFs) is prepared in a specific manner. For the following items, discuss in which section (operating, investing, or financing) of the SCFs they are found, where they might more appropriately be placed and why?

a. Dividends received
b. Interest paid
c. Income taxes

Question

a. Dividends received
b. Interest paid
c. Income taxes

Quizplus · Accepted Answer

The Answer of GAAP requires that the Statement of Cash flows (SCFs) is prepared in a specific manner. For the following items, discuss in which section (operating, investing, or financing) of the SCFs they are found, where they might more appropriately be placed and why?

a. Dividends received
b. Interest paid
c. Income taxes

GAAP Requires That the Statement of Cash Flows (SCFs) Is