Identify the activity that results in cash flow from financing activities.

Interest paid on debentures

The correct answer is Option (4) → Interest paid on debentures.

Interest paid on debentures-It is a financing activity. Cash paid as interest on debentures is typically considered a cash flow from financing activities. It represents the cost of borrowing funds, which is related to the company's financing.

* Interest received in cash from loans and advances- It is an investing activity.

* Conversion of debentures into shares- It is non cash activity so not included in cash flow statement.

* Cash payments for insurance premiums- It is an operating activity.