Which of the following is an example of cash flow from financing activity?
Options:
Receipt of dividend on investment
Cash received from a customer
Payment of dividend
Purchase of a fixed asset
Correct Answer:
Payment of dividend
Explanation:
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.