Which of the following will not be written in the cash flow statement?

Issue of bonus shares

The correct answer is option 2- Issue of bonus shares.

Issue of bonus shares will not be written in the cash flow statement.

Issue of bonus shares: Bonus shares are not included in the cash flow statement because they do not involve a cash transaction. Bonus shares are issued to existing shareholders from the existing reserves without any impact on the company's cash position.

OTHER OPTIONS

• Repayment of borrowings: This involves an outflow of cash as the company pays back its loans. This is a financing activity and will be included in the cash flow statement under the "Cash flow from financing activities".
• Issue of right shares: Right shares are offered to existing shareholders at a discounted price, giving them the right to subscribe to new shares in proportion to their existing holdings. When shareholders exercise their right and pay for these shares, it results in an inflow of cash for the company. This is a financing activity and will be included in the cash flow statement under the "Cash flow from financing activities".