Question

operating cash flows would not include: group of answer choices interest paid. dividends paid. interest received. dividends received.

Answer 1

In operating cash flows, interest received and interest paid are typically included because they are linked to a company's financial activities relating to operations. However, dividends paid are not included as they are considered a financing activity.

Step-by-step explanation:

Operating cash flows are a part of a company's cash flow statement which records the amounts of cash and cash equivalents entering and leaving the company. In the context of operating cash flows, these would typically include cash transactions related to the company's primary business operations.

While interest received and interest paid are generally included in operating cash flows because they are related to the operational aspects of a business's financial activity, dividends paid are not included. Dividends paid are considered a financing activity rather than an operating activity, as they pertain to the return of earnings to shareholders rather than the company's core revenue-producing operations. Therefore, of the options provided, dividends paid would not be included in operating cash flows.

Answer 2

Dividends paid are not typically included in operating cash flows but are classified under financing activities. Interest paid and received, and dividends received can be included as operating activities if they relate to the business's core operations.

Step-by-step explanation:

The question pertains to components that would not typically be included in operating cash flows within financial accounting. When calculating operating cash flows, certain types of cash flow are included to reflect the company's operational transactions and performance. Dividends paid to shareholders are normally not considered part of operating cash flows; instead, they are usually classified as financing activities. On the other hand, interest paid and interest received can be considered as operating activities because they relate to the core operations of the business. Similarly, dividends received from investments can be considered operating activities if the receipt of dividends is part of the company's primary operations. It is worth noting that the classification can change based on the company's business model and primary activities.