[Context based on Hero Ltd.] Hero Ltd. issued shares and made investments, including buying 10,000 shares of TATA Ltd. At the end of the year, TATA Lt - Accountancy MCQ CUET Accountancy 2022 15 July Shift 2 2026 | ExamTest.live

easyMCQCUET Accountancy 2022 15 July Shift 22026Accountancy

1 attempts0% success rate1 mark

[Context based on Hero Ltd.] Hero Ltd. issued shares and made investments, including buying 10, 000 shares of TATA Ltd. At the end of the year, TATA Ltd. paid Rs. 10, 000 as a dividend to Hero Ltd.Dividend received by Hero Ltd. would be classified under which activity?

Solution & Step-by-step Explanation

For a manufacturing enterprise like Hero Ltd. (which makes casual shirts), any income arising from external long-term investments (like dividend received from equity investment in another company) is classified under Investing Activities.

Try it yourself before checking the explanation above.

[Context based on Hero Ltd.] Hero Ltd. issued shares and made investments, including buying 10, 000 shares of TATA Ltd. At the end of the year, TATA Ltd. paid Rs. 10, 000 as a dividend to Hero Ltd.Dividend received by Hero Ltd. would be classified under which activity?

Operating

Investing

Financing

Investing and financing

Practice with timed mock tests and track your performance across Accountancy.