Which of the following is an example of cash flow from financing activity?
Answer & explanation
Correct answer: option 3
Cash Inflows from financing activities-
Cash proceeds from issuing shares (equity or/and preference).
Cash proceeds from issuing debentures, loans, bonds and other short/ long-term borrowings.
Cash repayments of amounts borrowed.
Interest paid on debentures and long-term loans and advances.
Dividends paid on equity and preference capital.