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

added

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deducted

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multiplied

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not treated

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Solution

The correct option is A added
Operating cash flows include dividend received, interest received and interest paid. However, dividends paid are reported in the financing section of the cash flow statement.

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Similar questions

Q. Classify the Following Activities into cash Flows under (A) Operating (B) Investing (C) Financing:
(i) Cash Sales of Goods.
(ii) Income Tax paid.
(iii) Dividend Paid.
(iv) Purchase of Fixed Assets.
(v) Redemption of Debentures.
(vi) Royalty Received.
(vii) Cash paid to the Suppliers
(viii) Rental Income.

Classify the following into (i) Operating Acivities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash Equivalents while preparing a Cash Flow Statement:
1. Cash Sales
2. Cash Received from Trade Receivables
3. Purchase of Building
4. Sale of Building
5. Issue of Share Capital or Debentures
6. Buy- back of Equity Shares
7. Dividend Paid
8. Interest paid on Debentures or Long - term Loans by (a) Finance Company (b) Non- Finance Company
9. Cash Purchases
10. Cash paid to trade payables
11. Redemption of Debentures and Preference Shares
12. Repayment of Long - term Loan
13. Office Expenses
14. Selling and Distribution Expenses
15. Manufacturing Expenses
16. Purchase of Goodwill
17. Sale of Patent
18. Purchase of Investments
19. Sale of Investments by (a) Finance Company (b) Non- Finance Company
20. Commission and Royalty received
21. Interest received on Investments by (a) Finance company (b) Non Finance company
22. Dividend received on Shares by (a) Finance Company (b) Non - Finance company
23. Rent Paid
24. Rent received if (a) Company's main business is property business (b) Other business
25. Income Tax Paid
26. Income Tax Refund received
27. Bank Balance
28. Short- term Deposits in Bank
29. Investment in Short - term or Marketable Securities

An example of cash flow from operating activity for financing company:

Q. In cash flow statement the item of Interest is shown in:
a. Operating activities
b. Financing activities
c. Investing activities

Q. Which of the following would not be considered a non-cash investing and financing activity in preparing a statement of cash flows?

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

The correct option is A addedOperating cash flows include dividend received, interest received and interest paid. However, dividends paid are reported in the financing section of the cash flow statement.

The correct option is A added
Operating cash flows include dividend received, interest received and interest paid. However, dividends paid are reported in the financing section of the cash flow statement.