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<p>Options </p> <p>a. Dividends received - Operating ; Dividends paid - Operating</p> <p>b. Dividends received - Operating ; Dividends paid - Financing</p> <p>c. Dividends received - Financing ; Dividends paid - Operating</p> <p>d. Dividends received - Financing ; Dividends paid - Financing</p> <p>e. None of the above</p>
b) should be the right answer
Under IAS7, dividends received may be reported under "operating activities" or under "investing activities" whereas under GAAP rules, dividends received from a company's investing activities is reported as an "operating activity," not an "investing activity."
B. Dividends received - Operating ; Dividends paid - Financing
-Dividends received by a company for its own investments are reported as an operating activity under GAAP.
-When a company pays out dividends to its shareholders, this action is considered a financing activity under GAAP.
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B
B IS THE NEAREST ONE
Answer B, the most appropriate
Answer ,B. is the most near from correct
Dividends received can be reported in operating and investmet
Dividends paid. Can be reported financing
B is the right answer ..............
b) Dividend received under Cashflow from Operating & Dividend paid under Cashflow from Financing Activities.
b.>>>>>>>>> Dividends received - Operating ; Dividends paid - Financing
correct answer: B
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