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Home Questions 9K4HUR8ZR2
Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

'Payment of interest on debentures' comes under which category of activity in the cash flow statement?

Options:

Operating activity

Investing activity

Financing activity

None of these

Correct Answer:

Financing activity

Explanation:

Cash Outflows from financing activities-
* Cash repayments of amounts borrowed.
* Interest paid on debentures and long-term loans and advances.
* Dividends paid on equity and preference capital.

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