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.
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.
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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Comparative Financial Data as on 31st March, 2024 and 2023
Additional Information: Interim dividend paid during the year was \textrupee{ 1,20,000}.Particulars 31.03.2024 (₹) 31.03.2023 (₹) Surplus (P&L) 17,00,000 8,00,000 Patents -- 50,000 Sundry Debtors 5,80,000 4,20,000 Sundry Creditors 1,40,000 60,000 Cash and Cash Equivalents 2,00,000 90,000 - CBSE CLASS XII - 2025
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\(\textit{Statement I:}\) In case of non-financial enterprises, payment of interest and dividends are classified as financing activities, whereas receipt of interest and dividends are classified as investing activities.
\(\textit{Statement II:}\) Investing and financing transactions that require the use of cash or cash equivalents, should be excluded from cash flow statement.
Choose the correct alternative from the following:- CBSE CLASS XII - 2025
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Comparative Statement of Assets
Particulars 31.03.2024 (₹) 31.03.2023 (₹) 10% Long Term Investments 2,50,000 4,50,000 Plant and Machinery 8,00,000 6,00,000 Goodwill 1,40,000 1,00,000 Investment in shares of Pinnacle Ltd. 14,00,000 5,00,000 Patents - 1,50,000 - CBSE CLASS XII - 2025
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Statement II: To calculate operating profit, before working capital changes, interest on investment is subtracted from net profit because it is a non-operating income.
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