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NEW QUESTION: 1
NEW QUESTION: 2
NEW QUESTION: 3
Which of the following should be classified as financing cash flow?
I). interest paid on borrowed funds.
II). dividends paid to stockholders.
III). interest income.
IV). dividend income.
A. I and III.
B. II and IV.
C. II only.
Interest paid on borrowed funds would be considered an operating cash flow because interest is reported on the income statement, while dividends paid to stockholders would be a financing cash flow because dividends flow through the retained earnings statement. Interest and dividend income are considered operating cash flow.