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easyMCQCUET Accountancy 2022 15 July Shift 22026Accountancy
1 attempts0% success rate1 mark

[Context based on Hero Ltd.] Dividend paid by TATA Ltd. is categorized under which activity for TATA Ltd. itself?

  1. A
    Operating activity
  2. B
    Investing activity
  3. C
    Financing activity
  4. D
    Operating and financing both

Solution & Step-by-step Explanation

For the company paying the dividend (TATA Ltd.), distributing dividends to its equity shareholders represents a distribution of profits associated with its capital funding. Therefore, it is categorized as a Financing Activity for the paying company.

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[Context based on Hero Ltd.] Dividend paid by TATA Ltd. is categorized under which activity for TATA Ltd. itself?
A
Operating activity
B
Investing activity
C
Financing activity
D
Operating and financing both

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Financial StatementsCash FlowFinancing Activities

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