Interest paid and interest and dividends received may be classified as operating cash flows because they enter into the determination of profit or loss.
Interest and dividends received or paid are classified consistently as either operating, investing, or financing cash activities. Interest paid and interest and dividends received are usually classified in operating cash flows by a financial institution. taxes are generally classified as operating activities.
A cash flow statement provides information about the changes in cash and cash equivalents of a business by classifying cash flows into operating, investing, and financing activities.
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