CUET Preparation Today
| A dividend paid by a non-finance company is: |
Operating Activity Investing Activity Financing Activity Cash & Cash Equivalents |
| Financing Activity |
| 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. In case of a non-financial enterprise, as per AS-3, it is considered more appropriate that payment of interest and dividends are classified as financing activities whereas receipt of interest and dividends are classified as investing activities |
