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Subject 1. Classification of Cash Flows and Non-Cash Activities tems to note:
Interest and dividend revenue, and interest expenses, are considered operating activities, but dividends paid are considered financing activities. Note that interest expense is reported on the income statement while <span>dividends flow through the retained earnings statement.
Remember that an interest/dividend item is an operating activity if it appears on the income statement. For example, payments of dividends do not appear on the income statement,
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37% [default]
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