Commerce Exam > Commerce Questions > Interest received on investment will be______...
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Interest received on investment will be___________
- a)Added (Investing activities)
- b)Added (Financing Activities)
- c)Deducted (Investing activities)
- d)Deducted (Financing Activities)
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Interest received on investment will be___________a)Added (Investing a...
Interest received on investment is added in investing activities while preparing cash flow statement.
This question is part of UPSC exam. View all Commerce courses
Most Upvoted Answer
Interest received on investment will be___________a)Added (Investing a...
Interest Received on Investment
Investment is the act of putting money into a financial scheme or business with the hope of making a profit. Interest is the amount paid to the investor for lending the money. When an entity receives interest on its investment, the accounting treatment for the same depends on the nature of the investment and the purpose of the investment.
Added (Investing Activities)
The interest received on investment is generally considered as a part of the investing activities in the statement of cash flows. The statement of cash flows is a financial statement that summarizes the cash inflows and outflows of an entity during a particular period. The interest received on investment is a cash inflow, and it is added to the net cash flow from the investing activities.
Investing activities include the purchase and sale of long-term assets, such as property, plant, and equipment, and the purchase and sale of investments, such as stocks and bonds. The interest received on these investments is a part of the cash inflows from investing activities.
Conclusion
In conclusion, interest received on investment is added to the net cash flow from investing activities in the statement of cash flows. This is because the interest received is a cash inflow and is directly related to the investing activities of the entity. By adding the interest received to the net cash flow from investing activities, the statement of cash flows provides a comprehensive view of the cash inflows and outflows of an entity during a particular period.
Investment is the act of putting money into a financial scheme or business with the hope of making a profit. Interest is the amount paid to the investor for lending the money. When an entity receives interest on its investment, the accounting treatment for the same depends on the nature of the investment and the purpose of the investment.
Added (Investing Activities)
The interest received on investment is generally considered as a part of the investing activities in the statement of cash flows. The statement of cash flows is a financial statement that summarizes the cash inflows and outflows of an entity during a particular period. The interest received on investment is a cash inflow, and it is added to the net cash flow from the investing activities.
Investing activities include the purchase and sale of long-term assets, such as property, plant, and equipment, and the purchase and sale of investments, such as stocks and bonds. The interest received on these investments is a part of the cash inflows from investing activities.
Conclusion
In conclusion, interest received on investment is added to the net cash flow from investing activities in the statement of cash flows. This is because the interest received is a cash inflow and is directly related to the investing activities of the entity. By adding the interest received to the net cash flow from investing activities, the statement of cash flows provides a comprehensive view of the cash inflows and outflows of an entity during a particular period.
Community Answer
Interest received on investment will be___________a)Added (Investing a...
Added in investing as it will tend to increase assets by the way of investment thereby it's a part of investing activitiy
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Interest received on investment will be___________a)Added (Investing activities)b)Added (Financing Activities)c)Deducted (Investing activities)d)Deducted (Financing Activities)Correct answer is option 'A'. Can you explain this answer?
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Interest received on investment will be___________a)Added (Investing activities)b)Added (Financing Activities)c)Deducted (Investing activities)d)Deducted (Financing Activities)Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Interest received on investment will be___________a)Added (Investing activities)b)Added (Financing Activities)c)Deducted (Investing activities)d)Deducted (Financing Activities)Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Interest received on investment will be___________a)Added (Investing activities)b)Added (Financing Activities)c)Deducted (Investing activities)d)Deducted (Financing Activities)Correct answer is option 'A'. Can you explain this answer?.
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