Dividend received by a financing company dealing in shares and debentures is generally classified as an Operating Activity when preparing the statement of cash flows. This is because dividends from investments, such as shares and debentures, are considered returns on investment and are related to the company's investment portfolio. Therefore, they are typically categorized as cash flows from investing activities on the statement of cash flows but since company deals in shares and debentures so it is an OPERATING ACTIVITY for company