Question : Dividend received by other than financial enterprise is shown in the Cash Flow Statement under :
Option 1: Operating Activities
Option 2: Investing Activities
Option 3: Financing Activities
Option 4: General Activities
Correct Answer: Investing Activities
Solution : In case of a non-financial enterprise, as per AS-3, it is considered more appropriate that payment of interest and dividends are classified as financing activities whereas receipt of interest and dividends are classified as investing activities..
Hence the correct answer is option 2.
Question : The cash flow statement begins with :
Option 1: Cash Flow from Operating Activities
Option 2: Cash Flow from Financing Activities
Option 3: Cash Flow from Investing Activities
Option 4: None of the above
Question : The objectives of Cash Flow Statement are:
Option 1: To determine the sources (receipts) of Cash and Cash Equivalents under Operating, Investing and Financing Activities of the enterprise.
Option 2: To determine applications (payments) of Cash and Cash Equivalents under Operating, Investing and Financing Activities of the enterprise.
Option 3: To determine net change in Cash and Cash Equivalents.
Option 4: All of the above
Question : Under which type of activity will you classic 'Commission and Royalty Received' while preparing the Cash Flow Statement?
Option 1: Operating activities
Option 2: Investing activities
Option 3: Financing activities
Option 4: Cash and cash equivalents
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