Question : Which of the following is not shown under Financing Activity?
Option 1: Interest paid
Option 2: Issued of equity shares
Option 3: Cash received against sale of goods
Option 4: Issue of Debentures
Correct Answer: Cash received against sale of goods
Solution : Answer = Cash received against the sale of goods
Cash received from the sale of goods is shown under operating activities and is not shown under Financing activities. Financing activities involve transactions related to raising and repaying funds, such as issuing equity shares and debentures or paying interest. Cash received from sales of goods is typically associated with operating activities, not financing activities, in the cash flow statement.
Hence, the correct option is 3.
