Multiple Choice Questions on A Mutual Fund Company receives a dividend of Rs20 Lakhs on its investments in another company rsquo ........... for UPSC EPFO Exam Preparation

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Multiple Choice Questions

A Mutual Fund Company receives a dividend of Rs20 Lakhs on its investments in another company rsquo ...........

General Accounting Principles cash flow statement
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    A Mutual Fund Company receives a dividend of Rs20 Lakhs on its investments in another company’s shares. Where will it appear in a Cash Flow Statement?

    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:

    Examples of the direct method of cash flows from operating activities include:

    • Salaries paid out to employees
    • Cash paid to vendors and suppliers
    • Cash collected from customers
    • Interest income and dividends received
    • Income tax paid and interest paid

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