Question
I have several questions and getting a bit confused. 1.Under GAAP, we recognize the interest expense from bank and interest revenue from investment as operating
I have several questions and getting a bit confused.
1.Under GAAP, we recognize the interest expense from bank and interest revenue from investment as operating activity or operating activity? Which one? Why? Interest expense from banks seems like a financing activity, while interest from investment seems like an investing activity.
2.Is this statement right or wrong? We would generate revenue from operating and investing activities, excluding financing activity. I include investing activity because I think the interest revenue from investment belongs to investing activity.
3.The cash flow of investing activity generates from sales of productive assets and investment to other companies. But i found that the loss or gains of the disposal of assets are included in the central operating activity. Are they conflicts? Are they the same things?
Please be detailed, I really lost.
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