Question : A dividend received by a manufacturing company is classified as
Option 1: Operating Activity
Option 2: Investing Activity
Option 3: Financing Activity
Option 4: Both (1) and (2)
Correct Answer: Investing Activity
Solution : Received dividends by manufacturing companies are categorised as Investing activities.
Hence the correct answer is option 2.
Question : Dividend paid by a finance company is shown as
Option 1: Operating Activity.
Option 2: Investing Activity.
Option 4: Cash and Cash Equivalent
Question : Amongst the following ‘payment of bonus to the employees’ by an insurance company is which type of activity?
Option 1: Investing Activity
Option 2: Operating Activity
Option 4: Both operating and Financing Activity
Question : Payment of Income tax is classified under :
Option 1: Operating activity
Option 2: Financing activity
Option 3: Investing activity
Option 4: None of the above
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