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.
Question : A dividend received by a manufacturing company is classified as
Option 1: Operating Activity
Option 2: Investing Activity
Option 3: Financing Activity
Option 4: Both (1) and (2)
Question : Dividend paid by a finance company is shown as
Option 1: Operating Activity.
Option 2: Investing Activity.
Option 4: Cash and Cash Equivalent
Question : ------------------is an example of the activity which remains financing activity for every enterprise.
Option 1: Issue of Shares
Option 2: Payment of Dividend on Shares.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile