Question : Interest received and paid' is considered as which type of activity by a finance company while preparing a Cash Flow Statement.
Option 1: Operating activities
Option 2: Investing activities
Option 3: Financing activities
Option 4: Cash and cash equivalents
Correct Answer: Operating activities
Solution : Answer = Operating activities
Interest received and paid are considered operating activities for a finance company when preparing a Cash Flow Statement. These transactions are part of the company's core operational activities related to its lending and investment operations, hence classified as operating activities. Hence, the correct option is 1.
Question : Under which type of activity will you classic 'Commission and Royalty Received' while preparing the Cash Flow Statement?
Question : Under which type of activity will you classify 'Refund of Income Tax received' while preparing the Cash Flow Statement?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile