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Which of the following activities come under the head of "financing activities"? A. Purchase of shares B. Dividend payable on equity shares C. I
Question

Which of the following activities come under the head of "financing activities"?
A. Purchase of shares
B. Dividend payable on equity shares
C. Issue of 9% Debentures
D. Redemption of preference shares
E. Interest paid on Debentures
Choose the correct answer from the options given below:

A.

A, B, and C only

B.

B, C and D only

C.

C, D and E only

D.

A, C and D only

Correct option is C

Financing activities are transactions that involve changes in equity and borrowings of the company. In this case, the correct options include:
(C) The Issue of 9% Debentures
(D) Redemption of Preference Shares
(E) Interest Paid on Debentures
Purchase of shares is financing Activity and Dividend payable on equity shares is no flow since dividend is not yet paid.

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