Advertisements
Advertisements
Question
A Ltd., engaged in the business of retailing of two-wheelers, invested ₹ 50,00,000 in the shares of a manufacturing company. State with reason whether the dividend received on this investment will be cash flows from operating activities or investing activities.
Short Answer
Advertisements
Solution
A Ltd. is engaged in the business of retailing two-wheelers and not in investing or financing as its core activity. Therefore, the dividend received is not related to its operating activities, and as per accounting norms, it is classified under investing activities for non-financial enterprises.
shaalaa.com
Is there an error in this question or solution?
