Class 12th Accountancy 2017 Set2 Delhi Board Paper Solution

Question 19

'Payment and Receipt of interest and dividend' is classified as which type of activity while preparing cash flow statement?

Answer

Payment of Interest and Dividend : Financing Activity
Receipt of Interest and Dividend : Investing Activity

Payment of interest and dividend are shown as 'cash inflows' (being non-operating expenses)

Receipt of interest and dividend are shown as 'cash outflows' (being non-operating incomes)