Financing Activities include :

(A) Purchase of Investment
(B) Proceed from Long term borrowings
(C) Repayment of Bank Loan
(D) Payment of Dividend
(E) Sale of Investments

Choose the correct answer from the options given below :

(B), (C) and (D) only

The correct answer is Option (1) - (B), (C) and (D) only.

(A) Purchase of Investment- This is an investing activity. Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Investing activities relate to purchase and sale of long-term assets or fixed assets such as machinery, furniture, land and building, etc. Transactions related to long-term investment are also investing activities.

(B) Proceed from Long term borrowings- This is a financing activity. Financing activities relate to long-term funds or capital of an enterprise, e.g., cash proceeds from issue of equity shares, debentures, raising long-term bank loans, repayment of bank loans, etc.

(C) Repayment of Bank Loan- This is a financing activity. Financing activities relate to long-term funds or capital of an enterprise, e.g., cash proceeds from the issue of equity shares, debentures, raising long-term bank loans, repayment of bank loan, etc.

(D) Payment of Dividend- This is a financing activity. Payment of dividends is usually classified as a financing activity. It involves distributing profits to the shareholders, representing a return on their investment, and is considered a financing outflow.

(E) Sale of Investment- This is an investing activity. Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Investing activities relate to purchase and sale of long-term assets or fixed assets such as machinery, furniture, land and building, etc. Transactions related to long-term investment are also investing activities.