MENU
Question -

State clearly what would constitute the operating activities for each of the following enterprises:
(i) Hotel
(ii) Film production house
(iii) Financial enterprise
(iv) Media enterprise
(v) Steel manufacturing unit
(vi) Software development business unit.



Answer -

(i) Hotels
1. Receipts obtained from sale of goods to customers.
2. Customer stay, payments of wages and salaries, food items and electricity are operating activities
(ii) Film Production House:
1. Receipts obtained from selling of film rights to distributors
2. Payment provided to actor, actresses, directors and other employees.
(iii) Financial Enterprises:
1. Receipts obtained from loan repayments, interest received from investments
2. Salary for employees, expenditure incurred for recovering loans, loan repayment etc
(iv) Media Enterprises:
1. Receipts that are obtained from various advertisements
2. Payments made to photographers, employees and reporters
(v) Steel Manufacturing Unit:
1. Receipts obtained from sale of steel rods, castings and sheets.
2. Payments made for purchasing iron, coal and salaries to staff.
(vi) Software Development Business Unit:
1. Receipts obtained for software sales and license renewal
2. Payments towards salaries of employees

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
×