Practicing Success
Financing Activities include : (A) Purchase of Investment Choose the correct answer from the options given below : |
(B), (C) and (D) only (A), (B) and (C) only (A), (C) and (E) only (A), (B) and (D) only |
(B), (C) and (D) only |
Financing activities relate to long-term funds or capital of an enterprise. As per AS-3, financing activities are activities that result in changes in the size and composition of the owners’ capital (including preference share capital in case of a company) and borrowings of the enterprise. Separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of funds (both capital and borrowings) to the enterprise. Examples of financing activities are: Cash Inflows from financing activities: Cash Outflows from financing activities: *** Sale and purchase of investments is an investing activity of the company. |