Practicing Success
Investing Activities includes : (A) Loan given to third party Choose the correct answer from the options given below : |
(C), (A) and (D) only (C), (A) and (E) only (A), (B) and (D) only (B), (A) and (C) only |
(A), (B) and (D) only |
The correct answer is Option (3) - (A), (B) and (D) only. (A) Loan given to third party- This is an investing activity as company has invested money in other person. (B) Acquire shares warrants- This is an investing activity as company has invested money in securities which will benefit company in future. (C) Repayments of amount borrowed- This is an financing activity. Amount returned which was borrowed earlier to finance the company. (D) Dividend received from Investment- Dividend received on investment made by the company in another company is an investing activity. (E) Issue of shares- Shares are issued by the company to raise funds for the company. Raising finance is a financing activity. |