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Question
Shyam Sunder Ltd. is a financing company. Under which of the following activity will the amount of 'Interest paid on loan' be shown:
Options
Investing activity
Financing activity
Both Financing and Operating Activity
Operating activity
MCQ
Solution
Operating activity
Explanation:
Because a financing company's principal activity is lending and borrowing money, loan interest payments are closely related to the company's fundamental operations.
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