Multiple Choice Questions on How will you classify loans given by Tata Finance Company ........ for UPSC EPFO Exam Preparation

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Multiple Choice Questions

How will you classify loans given by Tata Finance Company ........

General Accounting Principles cash flow statement
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    How will you classify loans given by Tata Finance Company?

    Cash Flow from Operating Activities

    Correct Answer

    Cash Flow from Investing Activities

    Incorrect Answer

    Cash Flow from Financing Activities

    Incorrect Answer

    No Cash Flow

    Incorrect Answer
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    Explanation:

    Cash flows arising from the purchase and sale of dealing or trading securities are classified as operating activities. Similarly, cash advances and loans made by financial enterprises are usually classified as operating activities since they relate to main activity of that enterprise.

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