Classify the following transactions as Operating Activities for a finance company and a non-finance company:
Classify the following transactions as Operating Activities for a finance company and a non-finance company:
(a) Purchase of Shares on a Stock Exchange.
(b) Dividend received on shares.
(c) Dividend paid on shares
(d) Loans, given.
(e) Loans taken
(f) Interest paid on borrowings.
[Ans.: Finance Company: (a), (b), (d), (e), (f); Non-finance company: None.]
Anurag Pathak Changed status to publish August 17, 2023
Solution:-
a) Purchase of shares on a Stock Exchange:- Operating activity for a finance company
b) Dividend received on shares:- Operating activity for a finance company
d) Loans given:- Operating activity for finance company
e) Loans taken:- Operating activity for finance company
f) Interest paid on borrowings:- Operating activity for finance company
Anurag Pathak Changed status to publish August 17, 2023
