In the Statement of Cash Flows, U.S.GAAP views cash received in the form of interest and dividends as coming from _____.
A)investing activities
B)operating activities
C)financing activities
D)exchange activities
E)economic activities

Question

Quizplus · Accepted Answer

According to U.S.GAAP, cash received in the form of interest and dividends is considered to be related to the company's operating activities. This is because interest and dividends are typically earned on investments that are made as part of the company's primary operations, rather than being directly related to financing or investing activities.