Question

While preparing cash flow statement, an entity (other

Q: Answer-While preparing cash flow statement, an entity (other than a financial institution) should disclose...

Explanation As per AS-3 and Ind AS 7 , for entities other than financial institutions , dividends received are classified as cash inflows from investing activities , because they represent returns on investments in other entities.

than a financial institution) should disclose the dividends received from its investment in shares as:

A Operating cash inflow

B Investing cash inflow

C Financing cash inflow

D Cash & cash equivalent

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While preparing cash flow statement, an entity (other

Solution