Question : Which of the following is not shown under Financing Activity?
Option 1: Interest paid
Option 2: Issued of equity shares
Option 3: Cash received against sale of goods
Option 4: Issue of Debentures
Correct Answer: Cash received against sale of goods
Solution : Answer = Cash received against the sale of goods
Cash received from the sale of goods is shown under operating activities and is not shown under Financing activities. Financing activities involve transactions related to raising and repaying funds, such as issuing equity shares and debentures or paying interest. Cash received from sales of goods is typically associated with operating activities, not financing activities, in the cash flow statement. Hence, the correct option is 3.
Question : Which of the following is shown under Financing Activity?
Option 2: Commission Received
Option 4: Cash paid for the purchase of goods
Question : Which of the following transactions are classified or shown as Operating Activity?
Option 1: Purchase of machinery against payment.
Option 2: Dividend paid.
Option 3: Sale of car in cash.
Option 4: Cash received from sale of goods.
Question : Debentures issued for consideration other than cash are not shown in the Cash Flow Statement because__________ is not received against the issue.
Option 1: Debentures
Option 2: Debentures suspense
Option 3: Cash flow from financing activities
Option 4: Cash
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile