Accountancy Part BCash Flow Statement

Dividend received is:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Investing activity

NCERT (2026-27 edition):
Test your Understanding – I

Extract from the NCERT textbook

NCERT (2026-27 edition):
Interest and Dividend – “… In case of a non-financial enterprise, as per AS-3, it is considered more appropriate that payment of interest and dividends are classified as financing activities whereas receipt of interest and dividends are classified as investing activities.”