Question

A company receives a dividend of ₹ 2 Lakhs on its investment in other company’s shares. In case of a finance company, it will be classified under which kind of activity?

Options

• Cash flow from operating activities

• Cash flow from investing activities

• Cash flow from financing activities

• No cash flow

Answer 1

Cash flow from operating activities

Explanation:

For a finance company, getting dividends is part of its normal business, so it counts as operating cash flow.