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When preparing the statement of cash flows, companies are required to report separately as operating cash flows all of the following except

A. Interest received on investments in bonds.

B. Interest paid on the company’s bonds.

C. Cash collected from customers.

D. Cash dividends paid on the company’s stock.

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Question added by Deleted user
Date Posted: 2015/02/27
Ezzidin Ibrahim
by Ezzidin Ibrahim , Financial Controller , Karim Food Industries

D. Cash dividends paid on the company’s stock.

Naveed Abbas Rana
by Naveed Abbas Rana , Accountant/ Consultant , Aboriginal Peoples Television Network

D is the correct answer

 

Only the direct method provides specific information about the cash inflows or outflows from different operating activities (such as cash received from customers and cash paid to suppliers).

Khurram Shaukat Memon
by Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

I guess option (b) for an answer here.

Muhammad Imran
by Muhammad Imran , Head of Accounts & Company Secretary , Fauji Infraavest Foods Limited

C. Cash collected from customers.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Answer D is the correct answer

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