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प्रश्न
While preparing Cash Flow Statement, the accountant of 'Rachana Ltd.', a financing company, included 'Interest received on loan' in financing activities. Was the correct in doing so? Give reason.
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उत्तर
The accountant was wrong in his approach of showing 'Interest received on Loan' under 'Financing Activity'. Interest received on loan by a financing company is cash inflow from operating activities. So it is to be categorised under 'Cash Flow from Operating Activities'.
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