Question : Royal Ltd is a financing company. Under which activity will the amount of interest paid on a loan settled in the current year be shown?
Option 1: Investing Activities
Option 2: Financing Activities
Option 3: Both investing and Financing Activities
Option 4: Operating Activities
Correct Answer: Operating Activities
Solution : If the company is a financing company than the amount of interest paid on a loan settled in the current year be will be shown under operating activity.
Hence the correct answer is option 4.
Question : Kunal Ltd under which activity will the amount of interest paid on a debentures settled in the current year be shown?
Question : Identify the transations as belonging to (i) Operating activity (ii) Investing activity (iii) Financing activity (iv) Cash and cash Equivalent -
(a) Cash received against revenue from service rendered
(b) Proceeds from issue from debenture
(c)
Question : When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.
Question : Interest paid by an investment company will come under which kind of activity while preparing. Cash-flow statement?
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