Question:
‘Dividend paid by a finance company’ is classified under which of the following?
‘Dividend paid by a finance company’ is classified under which of the following?
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Financing activities refer to transactions that affect the company’s capital structure, such as issuing dividends, raising capital, and repaying debt.
Updated On: Jan 25, 2025
- Operating Activities
- Investing Activities
- Financing Activities
- Cash and Cash Equivalents
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The Correct Option is C
Solution and Explanation
Dividend paid by a finance company is classified under financing activities as it is related to the company’s capital structure (equity and debt financing).
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