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Question : Dividend paid by a finance company is shown as

Option 1: Operating Activity.

Option 2: Investing Activity.

Option 3: Financing Activity

Option 4: Cash and Cash Equivalent


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Financing Activity


Solution : Answer = Financing Activity.

Dividends paid by a Finance company or Non-finance company are shown as Financing activities. This is because dividend payments represent cash outflows to shareholders, which are considered financing activities as they involve the distribution of company profits to its owners rather than operational or investment-related activities.
Hence, the correct option is 3.

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