Question

receipt of dividends on investment in stock a) operating activity (added to net income) b) operating activity (deducted from net income) c) investing activity d) finacnign activity e) significant noncash investing and financing activity f) not separetely reportedin the statement of cash flows

Answer 1

a) operating activity (added to net income)

Step-by-step explanation:

Operating activities are those activities that deals to day to day expenses and revenues i.e. salary expense, advance cash received,etc. Also it records the changes in working capital amounts

Here the receipt on dividend held on stock investment considered to be an operating activity and since it is a cash inflow so the same is to be included in the net income

Therefore option a is correct