Question : Which of the following transactions are classified or shown as Operating Activity?
Option 1: Purchase of machinery against payment.
Option 2: Dividend paid.
Option 3: Sale of car in cash.
Option 4: Cash received from sale of goods.
Correct Answer: Cash received from sale of goods.
Solution : Answer = cash received from the sale of goods.
Cash received from the sale of goods should be shown as operating activities because it represents revenue generated from the company's core business operations. The purchase of machinery, dividend paid, and sale of a car in cash are typically classified as investing or financing activities in the cash flow statement. Hence, the correct option is 4.
Question : Which of the following is shown under Financing Activity?
Option 1: Interest paid
Option 2: Commission Received
Option 3: Cash received against sale of goods
Option 4: Cash paid for the purchase of goods
Question : Which of the following is not shown under Financing Activity?
Option 2: Issued of equity shares
Option 4: Issue of Debentures
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
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