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Dividend received is an investing activity and not an operating activity.

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9y ago

Dividend received is an investing activity and not an operating activity.

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Q: Is received cash dividens form investing a operating activity?
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Is sales and total operating revenue the same thing?

Sales is the amount received from selling the goods while total operating revenue is the revenue which is earn only through basic business operating activity.


What is Dividends received in cash flows statement?

Dividend received is the amount received by company from investing in other companies and shows in cash flows from investing activities.


What does a negative cash from investing activities mean?

Negative cash flow from investing activities means that a company has spent more money on fixed assets than it has received from the sale of fixed assets in a given financial period. It's usually a sign of a company growing/investing in itself with a few to growing cash flow from operating activities, Positive cash from investing activities means that the company is selling off more fixed assets than it is investing in. There could be many reasons for this e.g. the value of the asset has grown and the company wants to realise a profit or to meet operating or financial cash flow obligations. Despite the use of the word 'postitve' is not always a good sign for a business.


Is Cash from issuance of long term debt finance or investment?

Cash received from long term debt is a financing activity from company point of view while investment from investor point of view, same as while company purchase shares of other company it is investing activity from company point of view while financing activity from other company's point of view.


Typical cash flows from investing activities include?

Typical cash flows from investing activities included a purchase of asset or interest received from investing in other company or receipts from selling of assets etc.


Cash flow statement performa?

following is the proforma cash flow statement1 - Cash flow from operating activitiesamount received from debtorspayment made to creditors2 - Cash flow from financing activitiessales purchase of assets3 - Cash flow from investing activitiesissuance of new share capital


Is rent received an operating income for a trading co?

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What is the treatment of interest received on marketable securities in cash flow statement?

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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.


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