Question

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Answer 1

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(a) In case of a Financial Enterprise, all the transactions except No. 9, shall be classified as Operatinng Activities since they relate to the main the revenue-producing activity of a financial enterprise. Transaction No. 9, i.e., Dividend paid to shareholders shall be classified as Financing Activity.

(b) In case of a Non-Financial Enterprise, all the transactions except No. 8 and 9, shall be classified as Investing Activities since they relate to acquisition and disposal of long-term assets. Transactions No. 8 and 9 (i.e., interest paid and dividend paid) shall be classified as Financing Activity.

Answer 2

Answer:

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