A company receives a dividend of Rs 2 Lakhs on its investment in other company rsquo s shares In cas...........

A company receives a dividend of Rs.2 Lakhs on its investment in other company’s shares. In case of a Finance Company, it will be classified under which kind of activity?

Cash Flow from Operating Activities

Cash Flow from Investing Activities

Cash Flow from Financing Activities

No Cash Flow

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Explanation:

Dividends received by a company for its own investments are reported as an operating activity under GAAP. An operating activity is any activity engaged in by a company that has a direct impact on cash flow, whether it is money coming in or money going out from the company. Dividends received are an indication of income coming into the company as they are paid out as a result of the company's own financial investment portfolio.