How do you know if an interest/dividend item is an operating activity?
Answer
if it appears on the income statement
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Subject 1. Classification of Cash Flows and Non-Cash Activities es, are considered operating activities, but dividends paid are considered financing activities. Note that interest expense is reported on the income statement while dividends flow through the retained earnings statement.
Remember that <span>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, and thus are not classified as operating activities.
All income taxes are considered o
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