Question : Payment of Income tax is classified under :
Option 1: Operating activity
Option 2: Financing activity
Option 3: Investing activity
Option 4: None of the above
Correct Answer: Operating activity
Solution : Income tax is categorised as an operating activity because it is paid as part of conducting/operating business.
Hence the correct answer is option 1.
Question : When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.
Question : Amongst the following ‘payment of bonus to the employees’ by an insurance company is which type of activity?
Question : A dividend received by a manufacturing company is classified as
Question : The cash flow statement begins with the :
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