Practicing Success
'Rent received by a company whose main business is real estate business' comes under which type of activity while making a cash flow statement? |
Operating activity Investing activity Financing activity None of these |
Operating activity |
Rent received by a Real Estate company is classified as Operating activity. Suppose, you are an owner of 100 flats and a proprietor of a Real Estate business too. For you, giving flats on rent, selling flats, purchasing flats will be an operating activity since it is the hard core activity of your business. |