Receipt of dividend can be classified as ___________.

Operating Activities

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Investing Activities

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Financing Activities

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Not a cashflow

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Solution

The correct option is B
Investing Activities

Receipt of dividend can be classified as cash flow from investing activities

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Similar questions

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.

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

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.

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

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?

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Receipt of dividend can be classified as ___________.

The correct option is B Investing Activities Receipt of dividend can be classified as cash flow from investing activities

The correct option is B
Investing Activities

Receipt of dividend can be classified as cash flow from investing activities