Question : Dividend paid by a finance company is shown as
Option 1: Operating Activity.
Option 2: Investing Activity.
Option 3: Financing Activity
Option 4: Cash and Cash Equivalent
Correct Answer: Financing Activity
Solution : Answer = Financing Activity.
Dividends paid by a Finance company or Non-finance company are shown as Financing activities. This is because dividend payments represent cash outflows to shareholders, which are considered financing activities as they involve the distribution of company profits to its owners rather than operational or investment-related activities. Hence, the correct option is 3.
Question : A dividend received by a manufacturing company is classified as
Question : Identify the transations as belonging to (i) Operating activity (ii) Investing activity (iii) Financing activity (iv) Cash and cash Equivalent -
(a) Cash received against revenue from service rendered
(b) Proceeds from issue from debenture
(c)
Question : Interest received and paid' is considered as which type of activity by a finance company while preparing a Cash Flow Statement.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile