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.
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
Both issuing shares and paying dividends on shares involve transactions related to the company's capital structure and shareholders' equity, making them financing activities. These activities affect the company's financial position and are thus categorized as financing activities in the cash flow statement. Hence, the correct option is 3.
Question : Payment of Income tax is classified under :
Option 1: Operating activity
Option 2: Financing activity
Option 3: Investing activity
Question : ------------------example of an activity, which is an investing activity for every type of enterprise.
Option 1: Purchase of goodwill
Option 2: Purchase of Fixed Assets
Option 3: Sale of Fixed Assets
Option 4: All of the above
Question : Buyback of own shares is shown as an outflow in Financing Activity as _________.
Option 1: Extraordinary items
Option 2: Cash and cash equivalents
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