Practicing Success
Dividend received is: |
Operating activity Financing activity Investing activity Cash and cash equivalents |
Investing activity |
The correct answer is option 3- Investing activity. Dividend received is an investing 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. So, Dividend received on investment made by the company in another company is an investing activity. |