AuthorTopic: Financial Stmt question
Agoothi
@2015-02-17 23:17:58		 Manufacturing company earns interest from fixed deposit in a bank, can they consider this to be part of the trading profit?
a) Yes, because it is an earning to the company
b) Yes, because cash is a current asset
c) No, because deposit interest is not generated by the main activity of the company
d) No until it is withdrawn from the bank account.

Anyone can help? Tks!
banik
@2015-02-23 07:10:29		 Answer is A

interest income is classified under operating activities in statement of cash flows.
Agoothi
@2015-02-24 16:00:49		 Thank u again!

CFA Discussion Topic: Financial Stmt question

To post a new topic or reply to a topic, please log in or register for a free user account.

I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes