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Cash flow statement

RRaechel3y ago
Hi sir, Why the interest paid is deducted from operating activities instead of deducting from financing activities.
John MoffatJohn MoffatTutor3y ago#1
The easy answer is because that is what is stated in the Accounting Standard! It is because interest and dividends are paid out of the operating profits and so reduce the cash available from operating activities.
RRaechel3y ago#2
Thank u so much.
John MoffatJohn MoffatTutor3y ago#3
You are welcome :-)
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