Which of the following transactions are related to Financing Activities?
A. Share issued for cash.
B. Dividend distributed to shareholders.
C. Sale of machinery.
D. Redemption of debentures.
E. Provision for depreciation.
Choose the correct answer from the options given below:
Codes

Correct option is C

Financing activities are related to the acquisition and disposal of funds to finance the operations and investments of a business. They involve transactions with owners (shareholders) and creditors (debenture holders).
a. Share issued for cash - This is a financing activity as it involves raising funds from shareholders by issuing new shares in exchange for cash.
b. Dividend distributed to shareholders - This is a financing activity. It is a distribution of profits to shareholders and falls under the category of operating activities.
c. Sale of machinery - This is not a financing activity. It is a transaction related to the sale of an asset and falls under the category of investing activities.
d. Redemption of debentures - This is a financing activity as it involves the repayment of funds to debenture holders.
e. Provision for depreciation - This is not a financing activity. It is an accounting entry that accounts for the allocation of the cost of an asset over its useful life and falls under the category of operating activities.
Therefore, the correct answer is (c) a, b, and d only.