Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Brokerage paid on the purchase of shares is what type of activity while making the cash flow statement by a finance company?

Options:

Operating activity

Investing activity

Financing activity

None of these

Correct Answer:

Operating activity

Explanation:

For a finance company, it is a day-to-day activity. So, it is an operating activity.
But in the case of a manufacturing concern, it is an investing activity.