Which of the following are cash from financing activities of ? (A) Cash receipt from issue of share (B)…
Under Ind AS 7 (Cash Flow Statement), Financing Activities are those that alter the size and composition of the enterprise's contributed equity and borrowings. These include…
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Which of the following are cash from financing activities of ?
(A) Cash receipt from issue of share
(B) Cash payment for buy-back of share
(C) Brokerage paid for acquisition of fixed assets
(D) Payment of cash dividend
(E) Cash receipt of interest and dividend on Long-term investment
Answer and explanation
Correct answer D
Under Ind AS 7 (Cash Flow Statement), Financing Activities are those that alter the size and composition of the enterprise's contributed equity and borrowings. These include cash receipts from issuing shares (A), cash payments for the buy-back/redemption of shares (B), and payment of cash dividends to shareholders (D). Fixed asset brokerage (C) and interest/dividends received on investments (E) are Investing Activities, making '(A), (B) and (D) only' correct.
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UGC NET Management