Pick the odd one out while Calculating Cash Flow from Financing Activities:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rent received
Financing activities change the size and make-up of the owners’ capital and borrowings. Rent received is income from property, so it is not a financing activity; for a non-financial company it is an investing inflow (or an operating one if letting property is its business).
Why the other options are incorrect
Option (1) Issue of Shares — Incorrect. Cash from issuing shares is a financing inflow, so it is not the odd one out.
Option (2) Repayment of Bank Loan — Incorrect. Repaying borrowings is a financing outflow.
Option (3) Redemption of Debentures — Incorrect. Repaying debentures is also a financing outflow.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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