The correct answer is: C. Financial Activities
A cash flow statement is a financial statement that shows how much cash a company has received and spent over a period of time. It is divided into three sections: operating activities, investing activities, and financing activities.
Operating activities are the day-to-day activities of a business, such as selling goods or services. Investing activities are the purchase and sale of long-term assets, such as property, plant, and equipment. Financing activities are the raising and repaying of money, such as issuing shares or borrowing money.
Dividends received by a financial enterprise are classified as investing activities in the cash flow statement. This is because dividends are a return on investment, and investments are classified as investing activities.
Option A is incorrect because operating activities are the day-to-day activities of a business, and dividends received are not part of day-to-day operations.
Option B is incorrect because investing activities are the purchase and sale of long-term assets, and dividends received are not the purchase or sale of an asset.
Option D is incorrect because dividends received are classified as investing activities, not operating activities or financing activities.