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Question
While preparing 'Cash Flow Statement', the accountant of 'Jain Limited', a financing company, showed dividend received on investments as investing activity. Was he correct in doing so? Give reason.
Solution
The accountant of 'Jain Limited' was not correct in recording dividend received on investments as cash flow from investing activity. 'Jain Limited' is a financing company, so the receipt of dividend should be regarded as the cash inflow from operating activities.
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| I | Particulars | Note No. | 31.03.2017 |
31.03.2017 |
| 1. |
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