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easyMCQCUET Accountancy 2025 2 June Shift 22026CUET Accountancy
1 mark

Cash received from the issue of debentures by a trading organization is classified under which activity in a cash flow statement?

  1. A
    Cash and cash equivalents.
  2. B
    Operating activity.
  3. C
    Investing Activity.
  4. D
    Financing Activity

Solution & Step-by-step Explanation

Issuing debentures is a transaction that alters the company's long-term debt capital. Therefore, the cash proceeds received from the issue are classified as a cash inflow from Financing Activities.

Practice this question

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Cash received from the issue of debentures by a trading organization is classified under which activity in a cash flow statement?
A
Cash and cash equivalents.
B
Operating activity.
C
Investing Activity.
D
Financing Activity

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Financial StatementsCash Flow Statement

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