Operating Cash Flows: CFA Level 1 Exam | Test Prep

Operating Cash Flows

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Question

Which of the following are operating cash flows?

I. Interest received -

II. Interest paid -

III. Dividends received -

IV. Dividends paid -

Answers

Explanations

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A. B. C. D.

Explanation

It is very important to remember the following points about dividends and interests:

1. Dividends received from stock investments are considered operating cash flows.

2. Dividends paid on equity are considered financing cash flows.

3. Interest payments on debt are considered operating cash flows.

4. Interest received from debt investments are considered operating cash flows.