Question:

Which of the following statements is incorrect ?
Cash payments to suppliers for goods and services.
Dividend received from investments in other enterprises.
Cash receipts from royalties, fees, commissions and other revenues.
Cash repayments of amounts borrowed.

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Solution and Explanation

(B) Dividend received from investments in other enterprises.

Reason: Dividend received is a cash flow from investing activities, not from operating or financing activities — thus making it the incorrect categorization if listed otherwise.

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