Question : Which of the following is shown under Financing Activity?
Option 1: Interest paid
Option 2: Commission Received
Option 3: Cash received against sale of goods
Option 4: Cash paid for the purchase of goods
Correct Answer: Interest paid
Solution : Financing activities will include money received from the sale of stocks and bonds, dividend payments, and interest payments.
Hence the correct answer is option 1.
Question : Which of the following is not shown under Financing Activity?
Option 2: Issued of equity shares
Option 4: Issue of Debentures
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 : Which of the following transactions will improve the current ratio?
Option 1: Repayment of a Current Liability.
Option 2: Purchase of goods for cash.
Option 3: Purchase of goods on credit.
Option 4: Sale of goods for Rs.2,00,000 (Cost Rs. 1,50,000).
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