In a Statement of Cash Flows,interest Received from Sources Other

question 9

Multiple Choice

In a statement of cash flows,interest received from sources other than a company's investments would be classified as cash inflows from:

• A) lending activities.
• B) operating activities.
• C) investing activities.
• D) financing activities.

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Definitions:

Plant Assets

Long-term tangible assets used in the production of goods and services, such as buildings, machinery, and equipment.

Cash Flows

The net amount of cash and cash equivalents being transferred into and out of a business.

Operating Activities

Activities that relate to the primary operations of the company, including cash flows from selling goods and services.

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for changes in balance sheet items to calculate cash flow from operating activities.