Which of the following is/are fact(s) related to cash flows from Operating Activities and Investing Activities?

(A) Receipt from interest and dividends will lead to cash inflow under Operating Activities
(B) Receipt from royalties, fees etc. are cash inflows under Operating Activities
(C) Payment of employee benefit expenses are cash outflow under Operating Activities
(D) Payment for purchase of plant leads to cash outflow under Investing Activities
(E) Payment of taxes are considered as cash outflow under Financing Activities

Choose the correct answer from the options given below.

(B), (C) and (D) only

The correct answer is Option (2) → (B), (C) and (D) only.

(A) Receipt from interest and dividends will lead to cash inflow under Operating Activities - This is incorrect as receipts from dividend and interest will come in investing activity.

(B) Receipt from royalties, fees etc. are cash inflows under Operating Activities- This is correct.

(C) Payment of employee benefit expenses are cash outflow under Operating Activities- This is correct.

(D) Payment for purchase of plant leads to cash outflow under Investing Activities- This is correct.

(E) Payment of taxes are considered as cash outflow under Financing Activities- This is incorrect. Payment of tax is an operating activity.