Question : When is the dividend received considered an operating activity?
Option 1: In the case of non-finance company
Option 2: In case of finance company
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: In the case of non-finance company
Solution : Answer = In the case of a non-finance company
The dividend received by the finance company is treated as operating activities in the case of a non-finance company and will be treated as an Inflow of Investing activities. Dividend received is considered an operating activity for non-finance companies because it is part of their regular business operations, representing income generated from investments in other companies.
Hence, the correct option is 1.
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