Statement-1: In the case of financial enterprises: Cash flows arising from interest paid and interest and dividends received, should be classified as cash flows from operating activities. Statement-2: In the case of othe
CS Executive · Cost and Management Accounting · PYQS · December 2021
Statement-1: In the case of financial enterprises: Cash flows arising from interest paid and interest and dividends received, should be classified as cash flows from operating activities. Statement-2: In the case of other enterprises: Cash flows arising from interest paid should be classified as cash flows from financing activities. Cash flows arising from interest and dividends received should be classified as cash flows from investing activities.
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Cash Flow Statement
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