Accountancy, asked by williamabcd987, 1 year ago

Ts grewal 12 th grade scanner pg s.68 q14 cash flow

Answers

Answered by fahadraza
0

Classification of  transactions as operating activities for a financial company:

Purchase of Shares on a Stock Exchange- Operating Activities

Dividend received on Shares- Operating Activities

Dividend paid on Shares- Refer Note

Loans given- Operating Activities

Loans taken- Operating Activities

Interest paid on borrowings- Operating Activities

 

A financial company is one that deals in shares, bonds, debentures, etc. on a regular basis. The transactions related to purchase and sale of these securities is regular phenomenon and forms part of their stock and is categorised under Operating Activity. However, dividend paid by them does not form part of Financing Activities.

Also, for a non-financial company issue of shares, debentures, etc. forms part of financing activities and not the operating activities.

Answered by ihabdcemarat
0

Answer:

Purchase of Shares on a Stock Exchange- Operating Activities

Dividend received on Shares- Operating Activities

Dividend paid on Shares- Refer Note

Loans given- Operating Activities

Loans taken- Operating Activities

Interest paid on borrowings- Operating Activities

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