Question : Buyback of own shares is shown as an outflow in Financing Activity as _________.
Option 1: Extraordinary items
Option 2: Cash and cash equivalents
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: Cash and cash equivalents
Solution : Answer = Cash and cash equivalents
Buyback of own shares is shown as an outflow in financing activities because it involves the use of cash or cash equivalents to repurchase shares from shareholders. This transaction represents a capital restructuring activity and is categorized under financing activities in the cash flow statement, impacting the company's capital structure. Hence, the correct option is 2.
Question : Payment for buy-back of Shares is an example of
Option 1: Extraordinary items of Operating activities
Option 2: Extraordinary items of Investing Activities
Option 3: Extraordinary items of financing Activities
Question : ------------------is an example of the activity which remains financing activity for every enterprise.
Option 1: Issue of Shares
Option 2: Payment of Dividend on Shares.
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