U.S.GAAP requires the classification of
A)the receipt of cash from interest and dividend revenues as an operating activity and cash related to the purchase and sale of long-term investments in securities as an investing activity.
B)both receipt of cash from interest and dividend revenues and cash related to the purchase and sale of investments in securities as an investing activity.
C)both receipt of cash from interest and dividend revenues and cash related to the purchase and sale of long-term investments in securities as an operating activity.
D)both receipt of cash from interest and dividend revenues and cash related to the purchase and sale of investments in securities as a financing activity.
E)both receipt of cash from interest and dividend revenues and cash related to the purchase and sale of long-term investments in securities as an exchange activity.

Question

Quizplus · Accepted Answer

U.S.GAAP requires the classification of cash received from interest and dividend revenues as an operating activity because it relates to the company's primary operations. On the other hand, cash related to the purchase and sale of long-term investments in securities is classified as an investing activity because it is not part of the company's primary operations and is instead related to investing activities.

U.S.GAAP Requires the Classification of