Payment of dividend and interest will result in cash outflow from financing activities.
Payment of employee benefit expenses will result in cash outflows from operating activities.
Receipt of interest and dividend will result in cash inflow from financing activities.
Operating activities are the principal revenue generating activities of the enterprise.
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The Correct Option isC
Solution and Explanation
According to AS-3:
- Receipt of **interest/dividends** is treated as **investing activities**, **not financing**.
- **(C)** is thus incorrect.
- **(A)** is partially true for dividends (financing) but **interest paid** can be classified based on policy.
- **(B)** and **(D)** are correct statements.