26、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. The Regional Bank of Australia receives interest income on the loans it has outstanding. Durango Manufacturing Inc. also receives interest income on some surplus funds they currently have invested in corporate bonds. For each company, respectively, the interest income they receive would be classified as which type of business activity for financial reporting purposes?
| The Regional
Bank of Australia | Durango
Manufacturing Inc. | A. | Operating activity | Operating activity | B. | Operating activity | Investing activity | C. | Investing activity | Operating activity | D. | Investing activity | Investing activity |
A. Answer A B. Answer B C. Answer C D. Answer D
Correct answer = B
"Financial Reporting Mechanics," Thomas R. Robinson, Hendrik van Greuning, Karen O'Connor Rubsam, Elaine Henry, and Michael A. Broihahn (CFA Institute, 2007)
2008 Modular Level I, Vol. 3, p. 37
Study Session 7-30-a
identify the groups (operating, investing, and financing activities) into which business activities are categorized for financial reporting purposes and classify any business activity into the appropriate group
For a bank, lending money and earning interest on it is an operating activity; but for a manufacturing company, they are not in the business of lending or investing money and the interest they receive would be more correctly classified as an investing activity. | 
发表于 2008-5-27 14:21
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