Which of the following is cash outflows from financing activities?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Cash repayments of amounts borrowed for long-term.
Financing activities change the size and composition of the owners’ capital and the borrowings of the enterprise, so repaying a long-term loan is a financing outflow. Of the other options, payments to suppliers belong to operating activities, and buying shares or debt instruments of other enterprises and making loans to third parties belong to investing activities.
NCERT (2026-27 edition):
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