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Basic Question 17 of 20
According to GAAP, available-for-sale investments should be included in ______ cash flow, dividends from such investments should be included in ______ cash flow, and interests from such investments should be included in ______ cash flow.
B. investing; operating; operating
C. investing; investing; investing
A. operating; investing; investing
B. investing; operating; operating
C. investing; investing; investing
User Contributed Comments 4
| User | Comment |
|---|---|
| Thorne91 | im confused why is it not Investing, Financing, Operating |
| r3v3r3n6o | Hi Thorne91, dividends paid are in Financing, but the question states dividends are received from the previous investment, so they are treated as interests, and therefore, included in Operating. |
| syazwan21 | The way I think of it is simply anything that affects net income in the income statement reflects CFO which is why dividends and interest RECEIVED are considered under CFO. |
| choas69 | @Thorne91: interest and dividends received and interest expenses are reflected in the income statement therefore they are in CFO. |
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Andrea Schildbach
Learning Outcome Statements
describe the steps in the preparation of direct and indirect cash flow statements, including how cash flows can be computed using income statement and balance sheet data
CFA® 2025 Level I Curriculum, Volume 2, Module 4.