Which of the following would NOT be classified as an operating activity?
A)Dividends paid
B)Interest received
C)Interest paid
D)Dividends received

Question

Quizplus · Accepted Answer

Dividends paid are a financing activity as they represent a distribution of profits to investors, whereas operating activities relate to core business operations such as sales, production, and expenses. Interest received and dividends received are operating activities as they represent income generated from investments, while interest paid is a financing activity as it represents the cost of borrowing funds.

Which of the Following Would NOT Be Classified as an Operating