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
Answer (1)
25th Jan, 2024
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.
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