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Basic Question 5 of 20
Which of the following statement(s) is (are) true?
II. Since interest and dividend receipts are not related to operating activities, they are not shown as part of the net cash flow from operating activities on the statement of cash flows.
I. Transactions involving sales and the cost of goods sold are summarized as operating activities.
II. Since interest and dividend receipts are not related to operating activities, they are not shown as part of the net cash flow from operating activities on the statement of cash flows.
User Contributed Comments 4
| User | Comment |
|---|---|
| vincenthuang | interest and dividend receipts enter into CFO |
| danlan | And dividend payment enters into CFF |
| mirfanrana | transaction involves sales and COGS are operating activities |
| boddunah | interest and dividend receipts are operating or investing cash flows under IFRS. we should assume GAAP if not specified, however. |
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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® 2024 Level I Curriculum, Volume 2, Module 4.