Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Which of the following will go in the same category in the cash flow statement of a company whether it is a financing company or a non-financing company?

Options:

Interest received

Dividend received

Interest paid

Dividend paid

Correct Answer:

Dividend paid

Explanation:

The correct answer is option 4- Dividend paid.

Dividend paid is the item that will go in the same category in the cash flow statement of a company, whether it is a financing company or a non-financing company. Dividend paid is typically categorized under "Financing Activities" in the cash flow statement. It represents a cash outflow related to the distribution of dividends to the company's shareholders, which is a financing activity regardless of the type of company.

OTHER OPTIONS-

  • Interest received is Investing activity for non financing company and operating activity for financing company.
  • Dividend received is Investing activity for non financing company and operating activity for financing company.
  • Interest paid is financing activity for non financing company and operating activity for financing company.