Question:medium
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.
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.
Updated On: Jan 14, 2026
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Solution and Explanation
(B) Dividends from equity stakes in other businesses.
Rationale: Dividend receipts represent cash flows derived from investment operations, distinct from operational or financing transactions. Therefore, misclassifying them as such is erroneous.
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