Question: Under US GAAP, on a cash flow statement: Both interest and dividend payments are classified as operating cash flows. Interest expense is classified as an

Under US GAAP, on a cash flow statement:

Both interest and dividend payments are classified as operating cash flows.

Interest expense is classified as an operating cash flow but dividend payment is classified as a financing cash flow.

Interest expense is classified as a financing cash flow but dividend payment is classified as an operating flow.

Both interest and dividend payments are classified as financing cash flows.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

A company uses International Accounting Standards (IAS) generally accepted accounting principles (GAAP) for their cash flow classification for interest and dividend payments and receipts. Which of...

Q:

Can you used the decision sheet to make the financial statements. Thank you decision sheet financial statement Production 1.1 Quantity produced 90,000 1.2 Investment (number of assembly lines) 9 1.3...

Q:

voricncuci, i. prepares its statement of cash flows using the indirect method. In Nonebetter's statement of cash flows, what were the totals of the amounts that increased and decreased, respectively,...

Q:

A3+ has prepared its 3rd quarter budget and provided the following data: The cash balatw on June 30 is projected to be $4,000, The company has to maintain a minimum -cash balance of 5,000 and is...

Q:

XZY International reports its cash flows in three categories. What should those categories be? a. Operating, Investing and Financing activities b. Operating, Revenue, and Expensing activities c....

Q:

Question 4 The Clorox Company reports depreciation & amortization on the statement of cash flows of $211 million for fiscal year 2021. A) Where is this amount reported on the Income Statement? (Hint...

Q:

1. The company used the LIFO method for inventory valuation. However, IFRS only permits the use of FIFO method. The inventory valuations for the current and previous period are as follows under the...

Q:

Selected Financial Statistics Andrews Baldwin Chester Digby 5.8% 7.8% 3.6% 3.4% 1.30 1.55 0.96 0.80 7.5% 12.1% 3.5% 2.7% Leverage (Assetstqultyl 1.5 1.8 2.6 2.4 ROE 10.9% 22.0% 9.1% 6.6% Emergency...

Q:

Complete the predictions for the next three years using the cash flow statement provided Cash flow statement Particulars Cash flows from operating activities Net earnings Adjustments to reconcile net...

Q:

Radiation Shields, Inc. Part 2 Pro-Forma Financial Statements Fall 2020 When preparing for the annual meeting of shareholders and the discussion of Radiation Shields (RS) Inc.s performance in 2011,...

Q:

As a senior manager in a large multinational corporation, you are tasked with implementing a major organizational change initiative aimed at improving efficiency and innovation. However, you...

Q:

Analyze the main features of two export organizations in terms of their businesses and environment under which they are doing their business. Discuss the socio-cultural and technological aspects in...

Q:

8 Someone put a post on the internet saying that because of the way the Earth is made, anyone anywhere on the planet could be affected by an earthquake and a volcanic eruption at any time. How would...

Q:

Five years ago Tesla Motors had a stock price of $24.94. Today it trades at $201.41. What would be the annual rate of return on the stock over the past five years if returns are compounded daily?

Q:

1. What types of companies are most likely to adopt cloud-based CRM software services? Why? What companies might not be well-suited for this type of software? Salesforce.com is the most successful...

Q:

8-13 What is a botnet? The IT sector is one of the key drivers of the European economy. It has been estimated that 60 percent of Europeans use the Internet regularly. Additionally, 87 percent own or...

Q:

8-15 Explain how a cyber attack can be carried out. The IT sector is one of the key drivers of the European economy. It has been estimated that 60 percent of Europeans use the Internet regularly....