Question : Payment for buy-back of Shares is an example of
Option 1: Extraordinary items of Operating activities
Option 2: Extraordinary items of Investing Activities
Option 3: Extraordinary items of financing Activities
Option 4: None of the above
Answer (1)
22nd Jan, 2024
Correct Answer: Extraordinary items of financing Activities
Solution : Answer = Extraordinary items of financing activities
Payment for buy-back of shares is classified as an extraordinary item of financing activities in the Cash Flow Statement because it involves the use of funds to repurchase shares, which affects the company's capital structure and financing arrangements.
Hence, the correct option is 3.
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