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Dividend paid by a finance company is classified under which kind of activity while preparing a cash flow statement? - Accounts

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Question

Dividend paid by a finance company is classified under which kind of activity while preparing a cash flow statement?

Options

  • Cash flow from operating activities

  • Cash flow from investing activities

  • Cash flow from financing activities

  • No cash flow

MCQ
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Solution

Cash flow from financing activities

Explanation:

When a finance company pays dividends, it is giving money to its owners, so it comes under financing.

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Chapter 13: Cash Flow Statement - OBJECTIVE TYPE QUESTIONS [Page 13.157]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 13 Cash Flow Statement
OBJECTIVE TYPE QUESTIONS | Q (A) 31. | Page 13.157
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