_______ are all the things a company does to bring its products and services to market on an ongoing basis.
Operating activity
Non-operating activity
Financing activity
None of the above
Operating activities are all the things a company does to bring its products and services to market on an ongoing basis.
An example of cash flow from operating activity for financing company:
A company purchased machinery worth Rs 1 crore on hire purchases basis. The accountant seeks your advice in accounting for the :
(i) Payment of instalment and
(ii) Interest under operating, investing and financing activity in the preparation of the Cash Flow Statement.
Classify the following activities into (i) Operating Activities, (ii) Investing Activities, and (iii) Financing Activities in case of (a) a Financial Enterprise, and (b) a Non-Financial Enterprise: 1. Purchase of securities fo a company. 2. Brokerage paid for the purchase fo securities. 3. Sale of securities of a Company. 4. Loans and advances made. 5. Receipts from the repayments of loans and advances. 6. Interest received on securities. 7. Dividend received on securities. 8. Interest paid on borrowings. 9. Dividend paid to shareholders.