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easyMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

Which one of the following activities relate to financing activities?

  1. A
    Cash receipts from royalties
  2. B
    Cash payments for purchasing fixed assets
  3. C
    Payment of dividend
  4. D
    Cash receipts from sale of fixed assets

Solution & Step-by-step Explanation

Payment of dividend is a cash flow arising from financing activities since it is the cost of obtaining capital.

Practice this question

Try it yourself before checking the explanation above.

Which one of the following activities relate to financing activities?
A
Cash receipts from royalties
B
Cash payments for purchasing fixed assets
C
Payment of dividend
D
Cash receipts from sale of fixed assets

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Financial StatementsCash Flow

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