Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Under U.S. GAAP, cash receipts from interest and dividends are classified as which type of activity on the statement of cash flows?

Operating activities

Investing activities

Non-cash activities

Financing activities

Previous problemNext problem

Verified step by step guidance

Understand the classification of cash flows under U.S. GAAP. The statement of cash flows categorizes cash flows into three main activities: operating, investing, and financing.

Review the definition of operating activities. These include transactions and events that affect net income, such as cash receipts from customers, cash payments to suppliers, and cash receipts or payments related to interest and dividends.

Analyze the treatment of cash receipts from interest and dividends. Under U.S. GAAP, cash receipts from interest and dividends are typically classified as operating activities because they are related to the entity's core business operations and income generation.

Compare this classification with other categories: Investing activities involve the purchase or sale of long-term assets, while financing activities involve transactions with creditors and owners, such as issuing debt or equity. Non-cash activities are not included in the cash flow statement but disclosed separately.

Conclude that cash receipts from interest and dividends are classified as operating activities under U.S. GAAP, as they directly relate to the entity's income-generating operations.