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प्रश्न
While preparing 'Cash Flow Statement', the accountant of 'Jain Limited', a financing company, showed dividend received on investments as investing activity. Was he correct in doing so? Give reason.
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उत्तर
The accountant of 'Jain Limited' was not correct in recording dividend received on investments as cash flow from investing activity. 'Jain Limited' is a financing company, so the receipt of dividend should be regarded as the cash inflow from operating activities.
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