Operating, Investing, and Financing Activities Flashcards
1
Q
How are Investment Dividends, Interest Paid/Received, and Income Taxes classified on the Statement of CFs?
A
-Under Operating Activities
2
Q
How are Dividends Paid classified on the Statement of Cash Flows?
A
-Under Financing Activities
3
Q
How are Trading Securities activities classified?
A
- If for short term speculation, as Operating
- If not, Investing
4
Q
How should foreign currency transactions be reported?
A
-Either at exchange rate in effect on date of transaction or average exchange rate if not materially different from rates on dates of transactions
