Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Which of the following will be shown in the cash flow statement?

Options:

Issue of shares of ₹2,00,000 to Vendor's from whom assets were purchased

Conversion of Debentures into shares of ₹50,000

Issue of Bonus shares of ₹60,000 by utility securities premium

Redemption of preference shares of ₹1,50,000 at 20% premium

Correct Answer:

Redemption of preference shares of ₹1,50,000 at 20% premium

Explanation:

This is the financing activity. It will be a cash outflow of ₹180000.