Question

State the category of the following items for a financial as well as nonfinancial company

(1) Dividend received

(2) Dividend paid

(3) Interest paid

(4) Interest received

Answer 1

| | Financial company | non-financial company |
| (1) Dividend received | operating activity | investing activity |
| (2) Dividend paid | financing activity | financing activity |
| (3) Interest paid | operating activity | financing activity |
| (4) Interest received | operating activity | investing activity |

(Note; for objective type questions any one or two can be asked)