Practicing Success
A Mutual Fund Company receives a dividend of Rs20 Lakhs on its investments in another company's shares. Where will it appear in a Cash Flow Statement? |
Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Cash Equivalent |
Cash Flow from Operating Activities |
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. |