CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Decision-makers often compare net income to net cash flows from operating activities. Which of the following accounts would not be included in both of these amounts?

A. Interest expense that has been paid
B. Interest revenue that has been received
C. Dividends declared and paid
D. Dividend revenue that has been received
Correct Answer: C

Dividends declared and paid are financing activities that do not affect net income or net cash flows from operating activities.

User Contributed Comments 3

User Comment
danlan C does not appear in either of them
A appear for both of them
B, D appear for net income and financing activity? Is this correct?
antarctica A, B and D appear in both of them
bokica if inderect method is used, intreset expence must be disclosed?
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