CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Numerical Example of Share Capital

A mutual fund...

Question

A mutual fund company receives a dividend of Rs. 25 lakhs on its investment in another company's shares. Why is it a cash inflow from operating activities for this company?

Open in App

Solution

A mutual fund company is a financial enterprise thus, dividend of Rs. 25 lakhs received by this company from its investment in shares is cash inflow from operating activities.

Suggest Corrections

thumbs-up

9

Similar questions

Q. Dividend received will be in the cash flow from operating activities of a non-financing company.

Q. Ashok invested Rs.

26, 400

12 %

25

shares of a company. If he receives a dividend of Rs.

2, 475

, find the number of shares he bought

Q. Ashok invested Rs.

26, 400

12 %

25

shares of a company. If he receives a dividend of Rs.

2, 475

, find the market value (in Rs.) of each share

Q. Classify the following transactions as Operating Activities for a financial company and a non-financial company:

(a) Purchase of Shares on a Stock Exchange.	(b) Dividend received on Shares.
(c) Dividend paid on Shares.	(d) Loans given.
(e) Loans taken.	(f) Interest paid on borrowings.

50

R s .10

were purchased for MV of

R s . 25

. Company declared

30

% dividend on the shares then find (1) Sum investment (2) Dividend received (3) Rate of return.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Understanding Balance Sheet

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Numerical Example of Share Capital

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon