When a fixed asset is bought as hire purchase, interest element is classified under ___. Options: A . &nbspOperating activities B . &nbspInvesting activities C . &nbspFinancing activities D . &nbspNone of these

When a fixed asset is bought as hire purchase, interest element is classified un

Question

When a fixed asset is bought as hire purchase, interest element is classified under ___.

Options:

A . Operating activities

B . Investing activities

C . Financing activities

D . None of these

Answer: Option C
:
C
When a fixed asset is bought as hire purchase, interest element is classified under financing activities.

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Question 1. A company sells old plant for Rs. 12,000 cash. The book value of the plant is Rs. 7,000. This transaction would affect:....of the plant is Rs. 7,000. This transaction would affect:

Question 2. Non-cash expenses like depreciation, depletion & amortization expense are _______ to net profit before tax under ind....are _______ to net profit before tax under indirect method.

Question 3. The statement of cash flows clarifies cash flows according to :....

Question 4. Cash flow from operating activities excludes money that is spent on capital expenditures. True or False....

Question 5. Example of cash flow from financing activity is :....

Question 6. Which of the following is incorrect about the statement of cash flows?....

Question 7. A financial statement that shows the inflows and outflows of cash during a particular period of time is known as:....

Question 8. It’s one of the purest measures of cash sources and uses.....

Question 9. In particular, which cash flow can uncover a company's true profitability?....

Question 10. Receipt of interest is to be _________ from net profit.....

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