2 :- Classify the following transactions as Operating Activities for a finance company and a non-finance company:
(a) Purchase of Shares on a Stock Exchange.
(b) Dividend received on shares.
(c) Dividend paid on shares
(d) Loans, given.
(e) Loans taken
(f) Interest paid on borrowings.
Solution :-
(a) Purchase of Shares on a Stock Exchange is an Operating Activity for Finance Company.
(b) Dividend received on shares is an Operating Activity for Finance Company.
(d) Loans, given is an Operating Activity for Finance Company.
(e) Loans taken is an Operating Activity for Finance Company.
(f) Interest paid on borrowings is an Operating Activity for Finance Company.