11 Views

Question : Kunal Ltd under which activity will the amount of interest paid on a debentures settled in the current year be shown?

Option 1: Investing Activities

Option 2: Financing Activities

Option 3: Both investing and Financing Activities

Option 4: Operating Activities


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Financing Activities


Solution : Answer = Financing activities

Interest paid on debentures is a financing activity because it involves payments related to obtaining financial resources for the company. Financing activities involve raising capital and repaying debts, which includes paying interest on debentures. Therefore, the amount of interest paid on debentures will be shown under financing activities in the cash flow statement.
Hence, the correct option is 2.

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
BML Munjal University | B.Tec...
Apply
A Hero Group Initiative | Up to 100% Scholarships | Highest CTC 32.99 LPA | Average CTC 8.45 LPA | Accepts JEE Score | Applications Closing Soon!
SRM University A.P UG Admissi...
Apply
UG Admissions Open 2026 | Highest CTC 52 LPA | Average CTC 9.09 LPA | 60+ Collaborations with the world's best Universities
Amity University-Noida MBA Ad...
Apply
Ranked among top 10 B-Schools in India by multiple publications | Top Recruiters-Google, MicKinsey, Amazon, BCG & many more.
Amity University-Noida BBA Ad...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Poddar Business School PGDM A...
Apply
Highest CTC 24 LPA | Average CTC 8.5 LPA | 1600+ Recruiters | 165+ Corporates Linkages
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books