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Why are payments and receipts of interest classified

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Reference no: EM132635772

Problem 1. Give two examples of cash receipts and two examples of cash payments that fit into each of the following classifications:

a. Operating activities.

b. Investing activities.

c. Financing activities.

Problem 2. Why are payments and receipts of interest classified as operating activities rather than as financing or investing activities?

Reference no: EM132635772

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