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Q: Is interest paid part of financing activities?
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Is collections of interest part of the financing or investing activities of a statement of cash flow?

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.


What category does Paid-in Capital fall into on the Cash flow statement?

Paid in capital is shown under cash flows from financing activities in cash flow statement.


Where does security premium come in cash flow statement?

Security premium is part of cash flow from financing activities


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.


Is payment of dividend part of financing activities?

Yes it is


Long term loans are repaid from what source of cash flow?

Long term loans are part of cash flow from financing activities.


Is debenture interest paid shown in balance sheet?

if Debenture interest is paid already then it will only show in income statement while if debenture interest is payable in future then it will only comes balance sheet, while if part of interest paid and part of interest payable then portion of paid amount will be shown in income statement while remaining amount will be shown in balance sheet as liability


What is the fundamental difference between simple and compound interests?

Simple interest:Every time interest is paid, it's paid on the amount you originally put in.Compound interest:Every time interest is paid, it's paid on the amount you had after the last time interest was paid.So, part of the interest that's paid today is interest on all the interest that's ever been paid, ontop of the amount you originally put in.


What is the treatment of unpaid dividend in Cash flow statement?

increase or decrease in unclaimed dividend is part of cash flow from financing activities.


How is the land purchase reported on the statement of cash flows?

land purchases is part of cash flow from financing activities as a reduction in cash.


Formula for net operating assets?

Get the balance sheet and sererate any financing activities from the operating activities. Financing activities are anything that is interest-bearing like debt, equity investments etc and not part of the business' everyday operations. The reformatted balance sheet should look like this: Operating Activities: Current Assets - Current Liabilities = Net Current Assets + Non Current Assets - Non Current Liabilities = NET OPERATING ASSETS - Financing activities (Net Financial Obligations) = Equity Cash is not an operating asset so the basic equation is: Total Assets - Cash = Operating Assets Total Liabilities - LTD - Current LTD = Operating Liabilities NOA = Operating Assets - Operating Liabilities


Cash flows from interest received are reported in the statement of cash flows as part of?

Operating activities