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Question
Interest received in cash from loans and advance is considered as ______ activity while preparing cash flow statement.
Fill in the Blanks
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Solution
Interest received in cash from loans and advance is considered as investing activities activity while preparing cash flow statement.
Explanation:
Interest received on loans and advances is treated as an investing activity because it arises from investment of funds. It represents returns earned from lending money, so it is shown under cash flow from investing activities.
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