GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Payment of dividend
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Cash payment to and on behalf of employees
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Cash payments to suppliers for goods and services
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Cash receipts from royalties, fees, commissions and other revenue
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Detailed explanation-1: -Payment of interest on loan would not be considered as a cash flow from operating activities for a non-fianncial company. It is an operating activity for a financial company.
Detailed explanation-2: -Purchase of equipment for cash is not an operating cash flow.
Detailed explanation-3: -Cash flow statement is not a replacement of funds flow statement.
Detailed explanation-4: -Dividends received are classified as operating activities. Dividends paid are classified as financing activities. Interest and dividends received or paid are classified in a consistent manner as either operating, investing or financing cash activities.
Detailed explanation-5: -Purchase of fixed asset is NOT a cash inflow. Cash inflow is the money received by an organization as a result of its operating activities, investment activities, and financing activities.