Oh okay, rent received is a non operating income so it is deducted from operating profit and it is shown as an addition to the investing activities since it is cash inflows from investing activities,.. Right? LOL, my whole question is baseless, sorry for bothering everyone. .

Rent received as an addition to operating profit or inflows from financing activities?

Rent received can be categorized either as an addition to operating profit or as inflows from financing activities, depending on the nature of the rental income and the specific accounting standards followed.

Operating Profit:
Rent received can be considered as an addition to operating profit if it is derived from the primary activities of the business, such as renting out properties that are part of the core operations. In this case, the rental income is directly related to the main business operations and contributes to the generation of revenue. It is classified as an operating revenue and is included in the operating profit or loss section of the income statement.

Financing Activities:
On the other hand, if the rental income is derived from properties or assets that are not directly related to the core operations of the business, it may be classified as inflows from financing activities. For example, if a company rents out a property that is not essential for its operations, such as a vacant building or excess land, the rental income generated from these assets may be considered as financing income. In this case, the rental income is not directly linked to the primary activities of the business and is treated as a non-operating revenue.

Accounting Standards:
The classification of rent received may also depend on the accounting standards followed by the company. Different accounting frameworks, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), may have specific guidelines regarding the treatment of rental income. These standards provide guidance on how to classify and present various types of income in the financial statements.

Conclusion:
In summary, rent received can be shown as an addition to operating profit if it is derived from the core operations of the business, or as inflows from financing activities if it is generated from assets that are not directly related to the main business activities. The specific classification may depend on the nature of the rental income and the accounting standards followed by the company.