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Is collections of interest part of the financing or investing activities of a statement of cash flow?
Wiki User
∙ 15y ago
Interest collected on loans advanced to some institution or indivudual becomes the part of financing activities of a statement of cash flow. The reason being that the loan on which interest in collected is the part of financing activities of the company and the interest earned on it increases the value of actual loan and thus the interest becomes the part of financing activities. The another reason that can be attributed is that when installments are received for the loan given, the interest to be received has to be calculated on the amount of loan outstanding on the borrower at the time of closure of accounting books. Therefore, interest received or collected becomes the part of financing activities.
Wiki User
∙ 15y ago
Wiki User
∙ 13y agoNo, interest payments whether from a loan or bond are conducted in the operating activities section. However when there is an increase in a note payable (such as a loan is taken out) it is found in the financing activities section.
Wiki User
∙ 10y agoCollection of dividend is always from another company in which one company invests, so it means that collection of dividend is part of investing activity and should be shown under investing activities of cash flow statement.
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Are proceeds from issuance of debt part of the financing or investing activities of a cash flow statement?
They are part of financing activities. Financing activities involve debt and equity, whereas investing activities involve the acquisition or dispostion of assets for the business.
What is cash-flow statement?
Cash flow statement is the statement which show the cash flow from operating, financing and investing activities.
What are the 3 kinds of business activities?
You can see these in a typical cash-flow statement, i.e., operating activities, investing activities and financing activities.
What has Has three sections operating investing and financing in accounting?
Cash flow statement has these three sections which are :Cash flow from operating activitiescash flow from investing activitiescash flow from financing activities
What are the components found in cash flow statement?
following items are included in cash flow statement1 - cash flow from operating activities2 - cash flow from investing activities3 - cash flow from financing activities.
Define Cash Flow Statement?
cash flow statement is statement which shows company cash inflows and outflows from operating, investing and financing activities.
Does the statement of cash flows consist of three sections?
Yes it consists of three sections as follows:Cash flow from operating activitiesCash flow from investing activitiesCash flow from financing activities.Yes, it contains three sections. These are the Operating, Investing and Financing Activities. ^^
What is Statement of Cash Flow?
Cash flow statement means the cash inflow and outflow from business due to operating, financing and investing activities.
What is cash flow statement and why it is prepared?
Cash flow statement shows the cash flows from different activities and it is prepared to show how much cash inflow and outflow from operating, investing and financing activities.
The last item on the statement of cash flows prio to the schedule of noncash investing and financing activities reports?
Cash at the end of the year
What does a statement of cash flows report?
Cash flow statement shows how much cash in and outflow from business due to operating, financing and investing activities.
What three categories of cash flow are used in the statement of cash flows?
1 - Cash flow from operating activities 2 - Cash flow from investing activities 3 - Cash flow from financing activities
