Question : Fardeen Ltd. received interest on an item and the accountant classified it unde Investing Activity while preparing Cash Flow Statement. Name another item for which such a treatment is possible.
Option 1: Dividend paid
Option 2: Dividend received
Option 3: Issue of equity shares
Option 4: Interest on call - in arrear
Correct Answer: Dividend received
Solution : Answer = Dividend received
Interest received on investments is typically classified as an investing activity in the Cash Flow Statement. Similarly, dividends received, being an income from investments, can also be classified as an investing activity. Both involve returns earned from investments made by the company, hence they fall under the investing category.
Hence, the correct option is 2.
Related Questions
Trending Articles/News
