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mediumMCQCUET Accountancy 2025 29 May Shift 22026Accountancy
1 mark

Dividend received for a trading (non-financing) organization is:

  1. A
    Operating activity
  2. B
    Investing activity.
  3. C
    Financing activity
  4. D
    Non-cash activity

Solution & Step-by-step Explanation

For a non-financial/trading enterprise, earning dividends happens because the company has invested its surplus money into the shares of other corporate entities. Therefore, any cash inflows from dividend receipts are classified as an Investing Activity under AS-3 / Ind AS 7.

Practice this question

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Dividend received for a trading (non-financing) organization is:
A
Operating activity
B
Investing activity.
C
Financing activity
D
Non-cash activity

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