Question : Under which type of activity will you classify 'Issue of Equity Shares at Premium' while preparing Cash Flow Statement?
Option 1: Operating activities
Option 2: Investing activities
Option 3: financing activities
Option 4: Cash and cash equivalents
Correct Answer: financing activities
Solution : Answer = Financing activities
"Issue of Equity Shares at Premium" would be classified under financing activities when preparing the Cash Flow Statement. This transaction involves raising funds through equity financing, which falls under the category of financing activities as it impacts the company's capital structure. If shares were issued at a premium will be shown under the heading of Financing activities while preparing the cash flow statement.
Hence, the correct option is 3.
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