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Question
Dividend received by the financial enterprise is shown in the cash flow statement under:
Options
Operating activity
Financing activity
Investing activity
None of these
MCQ
Solution
Operating activity
Explanation:
Because the acquisition and selling of securities, as well as the disbursement of loans and advances, is a primary business activity of financial institutions, it is included in the Operating Activity section of the cash flow statement.
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Preparation of Cash Flow Statement
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