Practicing Success
Which of the following is Not an Operating Activity? |
Interest Received by finance company Cash Revenue from operation Dividend Received by Manufacturing Company Amount Received from Debtors |
Dividend Received by Manufacturing Company |
The correct answer is Option (3) - Dividend Received by Manufacturing Company. Dividend received is an investing activity rather than an operating activity. Operating activities involve the core business operations and transactions related to generating revenue whereas investing activities involve the acquisition and disposal of long-term assets, including investments in securities and dividends received from those investments. |