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State Clearly What Would Constitute the Operating Activities for Each of the Follow in the Following of Enterprises: (I) Hotel - Accountancy

Short Note

Short Answer Question

State clearly what would constitute the operating activities for each of the follow in the following of enterprises:

(i) Hotel

(ii) Film production house

(iii) Financial enterprise

(iv) Media enterprise

(v) Steel manufacturing unit

(vi) Software development business unit.

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Solution

(i) Hotels

1. Receipts from sale of goods to customer.

2. Payment of wages and salaries, electricity, food items and other items used in accommodation.

(ii) Film Production House:

1. Receipts from selling film rights of a film to the distributors.

2. Payment to the staff, actors, actresses, directors, etc.

(ii) Financial Enterprises:

1. Receipts from repayment of loans, interest incomes from investments, etc.

2. Repayment of loans, recovery expenditure for recover of loans etc, salaries of employees.

(iv) Media Enterprises:

1. Receipts from advertisements.

2. Payments to staff, reporters, photographers, etc.

(v) Steel Manufacturing Unit:

1. Receipts from sale of steel sheets, steel castings, steel rods, etc.

2. Payment for iron, coal, salaries to staff, etc.

(vi) Software Development Business Unit:

1. Receipts from sale of software and renewal of licenses.

2. Payment of salaries to their employees, etc.

  Is there an error in this question or solution?
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APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 6 Cash Flow Statement
Short Answer Question | Q 7 | Page 272
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