Cash receipts from interest and dividends are classified as:
A) investing activities.
B) operating activities.
C) either financing or investing activities.
D) financing activities.

Question

Quizplus · Accepted Answer

Cash receipts from interest and dividends are considered as a part of the company's regular operations, hence they are classified as operating activities. Investing activities refer to buying or selling long-term assets like property, plant, or equipment, while financing activities include activities related to raising capital or paying dividends to shareholders.

Cash Receipts from Interest and Dividends Are Classified As