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CASH FLOW

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › CASH FLOW

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • June 20, 2021 at 2:21 am #625874
    shaunak22
    • Topics: 195
    • Replies: 32
    • ☆☆☆

    (v) Interest on cash deposits at the bank amounted to $75.

    will this fall under operating or investing activity?

    June 20, 2021 at 6:20 am #625888
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49606
    • ☆☆☆☆☆

    The accounting standard allows it to be shown under either heading provided the same treatment is used from year to year.

    Given that investing activities are referring to long-term investments, a small amount of interest like this is more likely to be shown under operating activities.

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