Multiple Choice Questions on Interest received by a finance company is classified under which kind of activity while preparing a ........... for Common University Entrance Test (CUET) Preparation

Accountancy ( 12th)

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Indian Economy - Understanding the basics of Indian economic system

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    Interest received by a finance company is classified under which kind of activity while preparing 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
    Explanation:

    Examples 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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