Question

In case of other enterprises cash flow arising from interest paid should be classified as cash flow from ___ while dividends and interest received should be stated as cash flow from___.

• A. Operating activities, financing activities
• B. Financing activities, investing activities
• C. Investing activities, operating activities
• D. None of these

Answer 1

The correct option is B

Financing activities, investing activities

In case of other enterprises cash flow arising from interest paid should be classified as cash flow from financing activities, while dividends and interest received should be stated as cash flow from investing activities.