Question : In which category 'Rent received' be classified while preparing the Cash Flow Statement in the case of a Non-Real Estate Agent?
Option 1: Operating Activities
Option 2: Investing Activities
Option 3: Financing Activities
Option 4: None of the above
Correct Answer: Investing Activities
Solution : Answer = Investing Activities
Rent received would be classified as an operating activity while preparing the Cash Flow Statement for a non-real estate agent. This is because it represents income generated from the primary operations of the business, which falls under operating activities. Hence, the correct option is 2.
Question : In which category 'Rent received' will be classified while preparing the Cash Flow Statement in the case of a Real Estate Agent?
Question : While preparing Cash Flow Statement what type of activity is, 'Payment of Cash to acquire Debentures by an Investment company'?
Option 2: Investing activities
Option 3: Financing activities
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