Question : Share issue expenses paid are shown as outflow under_______________.
Option 1: Operating activities
Option 2: Investing activities
Option 3: Financing activities
Option 4: None of the above
Correct Answer: Financing activities
Solution : Answer = Financing activities
Share issue expenses paid are shown as an outflow of Financing activities. These expenses are incurred in relation to the issuance of shares, which is a financing activity. Thus, they are categorized under financing activities, reflecting the company's capital-raising activities involving equity financing. Hence, the correct option is 3.
Question : Where will you show purchase of intangible assets in a Cash Flow Statement?
Option 1: Shown as outflow under 'Cash flows from investing activities'.
Option 2: Shown as outflow under 'Cash flows from operating activities'.
Option 3: Shown as inflow under 'Cash flows from investing activities'.
Question : When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.
Option 1: Operating activities, financing activities
Option 2: Financing activities, investing activities
Option 3: Investing activities, operating activities
Question : Adjustment of increase in the balance of 'Securities Premium' while preparing a Cash Flow Statement is
Option 1: shown as Cash from Financing activities
Option 2: shown as Cash from operating activities
Option 3: shown as Cash from investing activities
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