Asked by Danique Mcfarlane on Jul 04, 2024
Verified
A receipt of dividends on trading investments:
A) operating activities section
B) investing activities section
C) financing activities section
D) does not represent a cash flow
Trading Investments
Securities that a company holds for the purpose of selling them in the near term to profit from short-term price fluctuations.
- Detail the unique characteristics of operating, investing, and financing activities in the statement of cash flows.
Verified Answer
AA
Aileen AizenshtatJul 10, 2024
Final Answer :
A
Explanation :
Under ASPE, dividends received from trading investments are considered operating activities because they are part of the company's primary revenue-generating activities.
Learning Objectives
- Detail the unique characteristics of operating, investing, and financing activities in the statement of cash flows.
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