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Subject 1. Classification of Cash Flows and Non-Cash Activities t 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.
<span>All income taxes are considered operating activities, even if some arise from financing or investing.
Indirect borrowing using accounts payable is not considered a financing activity - such borrowing would be classified a
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