Question : Gulfam Ltd. a financing company, showed 'Dividend Received on Investments' as_______________.
Option 1: Operating activities
Option 2: Investing activities
Option 3: Financing activities
Option 4: Cash and cash equivalent
Correct Answer: Operating activities
Solution : Answer = Operating activities
Gulfam Ltd., being a financing company, would show "Dividend Received on Investments" under operating activities in the cash flow statement. This is because dividend income is typically considered a component of the company's core operating activities rather than its investing or financing activities. The dividend received by the finance company is shown under the head of operating activities.
Hence, the correct option is 1.
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