Understanding Cash Flow Statements

CFA Level I FRA
#1

Hi,

I have doubt why Under US GAAP, Interest and Dividend received are tanken under “Operating Activities” Why not “Investing Activities”.

#2

It’s just a peculiarity of US GAAP. Just as interest expense is a non-operating expense, but interest paid is an operating cash (out)flow. It makes no sense, you simply have to memorize it and move on.

#3

Thanks. I thought there is some logic behind this… :slight_smile:

#4

You’re welcome.