Question : Interest paid by an investment company will come under which kind of activity while preparing. Cash-flow statement?
Option 1: Operating Activities
Option 2: Investing Activities
Option 3: Financing Activities
Option 4: None of the above
Answer (1)
22nd Jan, 2024
Correct Answer: Operating Activities
Solution : Answer = Operating Activities
Interest paid by the investing company will come under the heading of operating activities because operating activities are the principal revenue-producing activities of the enterprise. This is because it relates to the day-to-day operational expenses of the company, such as interest on loans or bonds.
Hence, the correct option is 1.
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