Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

Interim dividend paid during the year is............. activity in the cash flow statement of the company.

Options:

Operating

Investing

Financing

None of these

Correct Answer:

Financing

Explanation:

The correct answer is option 3- Financing.

Interim dividend paid during the year is financing activity in the cash flow statement of the company. It is financing activity not operating activity so it is added back to net profit to find out the cash flow operating activity.