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easyMCQCUET Accountancy 2025 16 May Shift 12026CUET Accountancy
1 mark

A company issued shares of ₹ to the public. How will this transaction be disclosed under the Cash Flow Statement?

  1. A
    Outflow of ₹ under Financing Activity
  2. B
    Outflow of ₹ under Investing Activity
  3. C
    Inflow of ₹ under Financing Activity
  4. D
    Inflow of ₹ under Investing Activity

Solution & Step-by-step Explanation

The issuance of shares relates directly to changes in the size and composition of the owner's capital structure of the enterprise. Hence, it is categorized under Financing Activities. Since cash is received by the company upon public subscription, it represents a net Inflow of cash amounting to ₹ .

Practice this question

Try it yourself before checking the explanation above.

A company issued shares of ₹ to the public. How will this transaction be disclosed under the Cash Flow Statement?
A
Outflow of ₹ under Financing Activity
B
Outflow of ₹ under Investing Activity
C
Inflow of ₹ under Financing Activity
D
Inflow of ₹ under Investing Activity

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Financial StatementsCash Flow

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