For non-financing company, the payment of interest is a/an _______

Operating activities

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Investing activities

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Financing activities

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Financing activities

For non-financing company, the payment of interest is a financing activity.

Suggest Corrections

Similar questions

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.

Q. Ramlal deposited

8, 000

with a finance company for

3

years at an interest of

15

% per annum. What is the compound interest that Ramlal gets after

3

years?

Interest income in case of a company other than a finance company is Revenue from operations.

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

Q. Ramu borrowed Rs 15625 from a finance company to buy a scooter. If the rate of interest be 16% per annum compounded annually, what payment will he have to make after

2 \frac{1}{4}

years?

Join BYJU'S Learning Program

For non-financing company, the payment of interest is a/an _______

The correct option is C Financing activities For non-financing company, the payment of interest is a financing activity.

The correct option is C
Financing activities

For non-financing company, the payment of interest is a financing activity.