On a statement of cash flows,cash receipts from interest and dividends are classified as:
A)operating activities.
B)investing activities.
C)financing activities.
D)noncash activities.

Question

Quizplus · Accepted Answer

Cash receipts from interest and dividends are typically generated from sources that are tied to a company's core business activities, such as investments in securities and loans to other companies. As such, they are classified as operating activities on the statement of cash flows.

On a Statement of Cash Flows,cash Receipts from Interest and Dividends