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
Answer (1)
23rd Jan, 2024
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.
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