Under U.S.GAAP, the statement of cash flows classifies cash expenditures for interest on debt as an operating activity but classifies cash expenditures for dividends to shareholders as a financing activity.

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Cash expenditures for interest on debt are considered an operating activity because they are a normal part of a company's ongoing operations, while cash expenditures for dividends are considered a financing activity because they involve distributing profits to shareholders. This classification is in accordance with the Financial Accounting Standards Board's (FASB) guidance on the statement of cash flows.

Under USGAAP, the Statement of Cash Flows Classifies Cash Expenditures for for Interest