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Question
Dividend received by other than financial enterprise is shown in cash flow statement under ______.
Options
Operating activity
Financing activity
Investing activity
None of the above.
General activities
MCQ
Fill in the Blanks
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Solution
Dividend received by other than financial enterprise is shown in cash flow statement under Investing activity.
Explanation:
For a non-financial enterprise, buying shares of other companies is a non-core investment activity. Therefore, any return earned on these investments, such as a dividend received, is classified as a cash inflow under Investing Activities
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