Question : Interest received and paid' is considered as which type of activity by a finance company while preparing a Cash Flow Statement.
Option 1: Operating activities
Option 2: Investing activities
Option 3: Financing activities
Option 4: Cash and cash equivalents
Answer (1)
24th Jan, 2024
Correct Answer: Operating activities
Solution : Answer = Operating activities
Interest received and paid are considered operating activities for a finance company when preparing a Cash Flow Statement. These transactions are part of the company's core operational activities related to its lending and investment operations, hence classified as operating activities.
Hence, the correct option is 1.
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