Question

Classify the following activities into (i) Operating Activities, (ii) Investing Activities, and (iii) Financing Activities:

1. Purchase of shares of a company.
2. Proceeds from sale of shares.
3. Brokerage paid on purchase of shares.
4. Loans and advances made to third parties.
5. Dividend and interest received on securities.
6. Salary paid to employees.
7. Interest paid on debentures.
8. Dividend paid to shareholders.

Answer 1

Operating Activities	Investing Activities	Financing Activities
Salary paid to employees.	Purchase of shares of a company.	Interest paid on debentures.
	Proceeds from sale of shares.	Dividend paid to shareholders.
	Brokerage paid on purchase of shares.
	Loans and advances made to third parties.
	Dividend and interest received on securities.