Alas, there is no _ logical _ reason for it (in the sense that, if you forget it, you can think about the reasoning and come up with the right answer). This is one that you simply need memorize for US GAAP.
Also, remember for US GAAP that interest paid (on the cash flow statement) is CF_ O, but interest expense (on the balance sheet) is a _ nonoperating expense. Sigh.
Nope, you’re not missing anything: it’s just the silly US GAAP rules. No reason, just rules.
Was hoping there would be a good way of learning Exhibit 1 from reading 27, but seems like… alas.
I guess the way that I’m going to try to memorise it is… if you’re receiving something (dividends or interest) it’s like getting a return on your investment whereas if you pay something (dividends or interest) it’s like financing your investments if that makes sense.
All the other ones are operating except for dividends paid which are Financing.