Introduction
In preparing the cash flow statement, interest received is considered as a financing activity. This is because interest received is a result of lending money or investing surplus funds, which are classified as financing activities in the cash flow statement. The cash flow statement provides valuable information about the cash generated or used by a company during a specific period, and it helps users assess the company's ability to generate future cash flows.

Importance of Interest Received as Financing Activities
Interest received is an important component of financing activities in the cash flow statement because it represents the cash inflows from lending or investing activities. Including interest received under financing activities provides a clearer picture of the company's cash inflows and outflows related to its financing activities.

Classification and Reporting
Interest received is reported as a cash inflow under the financing activities section of the cash flow statement. It is important to differentiate interest received from other cash inflows, such as cash receipts from operating activities or investing activities. By properly classifying interest received under financing activities, users of the financial statements can assess the company's ability to generate cash from its financing activities, such as lending or investing surplus funds.

Impact on Cash Flow Statement Analysis
Analyzing interest received under financing activities helps users of the cash flow statement evaluate the company's investment or lending activities. If a company receives significant interest income from its investments or lending activities, it indicates that the company is generating additional cash inflows from its financing activities. This can be seen as a positive sign of financial health and sustainability.

Conclusion
Interest received is considered as a financing activity in the cash flow statement due to its association with lending or investing surplus funds. By including interest received under financing activities, the cash flow statement provides a comprehensive view of the company's cash inflows and outflows related to its financing activities. Analyzing interest received helps users assess the company's ability to generate cash from its financing activities and evaluate its financial health.