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Home Questions 9KJG2REFBJ
Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

'Issue of share capital for cash' is what type of activity while making a cash flow statement by the company?

Options:

Operating activity

Investing activity

Financing activity

None of these

Correct Answer:

Financing activity

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

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