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mediumMCQCUET Accountancy 2022 15 July Shift 22026Accountancy
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[Context based on Hero Ltd.] Hero Ltd. decided to issue shares of each at a premium of per share (issue price ).The amount collected as Security Premium Reserve will be shown under which cash flow activity?

  1. A
    Operating activity
  2. B
    Investing activity
  3. C
    Financing activity
  4. D
    Cash and Cash equivalent

Solution & Step-by-step Explanation

Proceeds from issuing share capital (including both the face value and any associated security premium amount) are related to changing the scale and composition of equity capital. Thus, it constitutes an inflow under Financing Activities.

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[Context based on Hero Ltd.] Hero Ltd. decided to issue shares of each at a premium of per share (issue price ).The amount collected as Security Premium Reserve will be shown under which cash flow activity?
A
Operating activity
B
Investing activity
C
Financing activity
D
Cash and Cash equivalent

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Financial StatementsCash FlowFinancing Activities

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