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?
Answer & explanation
Correct answer: option 4
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.