Practicing Success
Practicing Success
CUET Preparation Today
| A Mutual Fund Company receives a dividend of Rs20 Lakhs on its investments in another company"s shares. Where will it appear in a cash flow statement? |
Cash Flow from Investing Activities Cash Flow from Financing Activities Cash Flow from Operating Activities No cash flow |
| Cash Flow from Operating Activities |
| In case of a financial enterprise (whose main business is lending and borrowing), interest paid, interest received and dividend received are classified as operating activities while dividend paid is a financing activity. (Mutual Fund) is a financing enterprise. |
