Are interests received from investments classified under investing activities or operating activities?
Homework Answers
Answer
--Classification of 'interest received' under investing activities or operating activities depends on the nature of the interest revenue being received.
--Here, the question states that 'interest' is interest received from investments. This is to be classified under ' Investing Activities ' because its income from investment.
--However, had the interest received was interest received from Notes receivables from customer, the interest would then be classified under 'Operating activities', because that would be from general operations of business.
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Are
interests received from investments classified under investing
activities or operating activities?
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2. In cash from operating activities, what was the total cash
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2. In cash from operating activities, what was the total cash
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