List any two financing activities that will result into outflow of cash.
SOLUTION (i) Redemption of Preference Shares/Buy-back of Equity Shares.(ii) Interest paid on borrowings.
SOLUTION (i) Redemption of Preference Shares/Buy-back of Equity Shares.(ii) Interest paid on borrowings.
SOLUTION (i) Cash proceeds from issuing shares or other similar instruments.(ii) Cash proceeds from issuing debentures, loans, notes, bonds and other short or long-term borrowings.'
SOLUTION (i) Cash receipts from issuing shares and debentures.(ii) Repayment of debentures.
SOLUTION Financing activities are the activities that result in change in Capital and borrowings of the enterprise.
SOLUTION (i) Purchase of fixed assets, (ii) Purchase of investments.
SOLUTION In case of sale of fixed asset inflow of cash arise in the case of Investing Activities.
SOLUTION (i) Proceeds from sale of fixed assets.(ii) Proceeds from sale of Non-Current Investments.
SOLUTION (i) Cash payments to acquire fixed assets.(ii) Cash receipts from sale of fixed assets.
SOLUTION Investing activities are the purchase and sale of long-term assets. These assets also include the purchase and sale of such investments which are not included in Cash equivalents.