Question : Strong Garments Ltd. is engaged in the export of readymade garments. The company purchased machinery of Rs. 20,00,000 for the use in packaging of such garments will be ---

Option 1: Operating activities

Option 2: Investing activities

Option 3: Financing activities

Option 4: None of the above

Question : Strong Garments Ltd. is engaged in the export of readymade garments. The company purchased machinery of Rs. 20,00,000 for the use in packaging of such garments will be ---

Option 1: Operating activities

Option 2: Investing activities

Option 3: Financing activities

Option 4: None of the above

Question : AbC Ltd. purchased machinery of Rs. 20,00,000 issuing a cheque of Rs. 5,00,000 and 10% Debentures of Rs. 15,00,000. In the Cash Flow Statement, the transaction will be shown as

Option 1: Outflow under Investing Activity Rs. 20,00,000, inflow under Financing Activity as Receipt for Debentures Rs. 15,00,000

Option 2: Outflow under investing Activity Rs. 5,00,000

Option 3: Inflow of Rs. 15,00,000 as Financing Activity.

Option 4: None of the above

Question : AbC Ltd. purchased machinery of Rs. 20,00,000 issuing a cheque of Rs. 5,00,000 and 10% Debentures of Rs. 15,00,000. In the Cash Flow Statement, the transaction will be shown as

Option 1: Outflow under Investing Activity Rs. 20,00,000, inflow under Financing Activity as Receipt for Debentures Rs. 15,00,000

Option 2: Outflow under investing Activity Rs. 5,00,000

Option 3: Inflow of Rs. 15,00,000 as Financing Activity.

Option 4: None of the above

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

Option 4: None of the above

Question : Royal Ltd is a financing company. Under which activity will the amount of interest paid on a loan 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