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While preparing Cash Flow Statements what type of activity is, Payments of Cash to acquire Debentures by an investment company?


For an Investment Company, payment of cash to acquire debentures is as an operating activity. As for them it is a part of their daily business operation.

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Under which type of activity will you classify Dividend received by a financial company while preparing Cash Flow Statement? 


State the purpose of preparing a Cash Flow Statement.


What is meant by Cash from Operating Activities? 


Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of Liva Ltd. as at 31-3-2013 and 31-3-2012:
Notes to Accounts: 
Note 1

Particulars

2013
Rs

2012
Rs

Reserves and Surplus
Surplus (balance in statement of profit and loss)

1,32,000

24,000




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