GAAP Requirements Explained

GAAP Requirements

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GAAP requires that:

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Explanations

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A. B. C. D.

D

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.