Question : IDFC Bank Ltd. issued 1,00,000, 9% Debentures of Rs.100 each for subscription. The issue was subscribed.
The amount of receipt will be shown as __________.
Option 1: Investing Activity
Option 2: Operating Activity
Option 3: Financing Activity
Option 4: General Activity
Answer (1)
24th Jan, 2024
Correct Answer: Financing Activity
Solution : The net amount of financing a business generates during a specific time period is called cash flow from financing activities. The issuing and repayment of equities, the payment of dividends, the issuance and repayment of debt, and capital lease obligations are all examples of financial activity.
Hence the correct answer is option 3.
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