CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

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.

A. operating; investing; investing
B. investing; operating; operating
C. investing; investing; investing
Correct Answer: B

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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