Cash Flow Statement · Class 12 · CBSE · Commerce Accountancy
While preparing a Cash Flow Statement as per AS-3 (Revised), how is a cash dividend paid by a non-financial company treated?
Practice question from Cash Flow Statement (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-75FF4F
While preparing a Cash Flow Statement as per AS-3 (Revised), how is a cash dividend paid by a non-financial company treated?
- A.Operating Activity
- B.Investing Activity
- C.Financing ActivityCorrect answer
- D.Cash and Cash Equivalent
Solution
For a non-financial enterprise, dividend paid is classified as a Financing Activity because it represents the cost of obtaining financial resources from equity shareholders.
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