Interest paid by a financial company will come under which kind of activity while preparing 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 |
The correct answer is option 3- Cash Flow from Operating Activities. Interest paid by a financial company will come under Operating activity while preparing a cash flow statement. 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. |