Dividend Received of ₹60,000 on shares of another company, held as investment will be __________.

Added in Investing Activities and Substracted in Operating Activities

The correct answer is Option 4 - Added in Investing Activities and Substracted in Operating Activities.

Dividends received on shares of another company, held as an investment, should be added in Investing Activities and subtracted in Operating Activities.

It is added in investing activities because it is cash inflow from investing activity. Since the dividend is received from an investment, it is considered part of the inflows from investing activities. Therefore, the dividend received will be added to the investing activities.

It is deducted from cash flow from operating activities because it is cash inflow from non-operating activity. Operating activities generally include the primary revenue-generating activities of the company, such as sales of goods or services. Dividend received is not considered part of operating activities in cash flow statements. Therefore, it will be subtracted from operating activities to ensure that the cash flow from operations is accurately reported without mixing it with non-operating items like dividends from investments.