Cash receipts from interest and dividends are classified as operating activities on a GAAP-based statement of cash flows.

Question

Quizplus · Accepted Answer

Cash receipts from interest and dividends are considered part of the operating activities section on a GAAP-based statement of cash flows because they are related to the normal operations of a company. Other examples of operating activities include cash received from customers, payments to suppliers, and payment of employee salaries.

Cash Receipts from Interest and Dividends Are Classified as Operating