Question : Buyback of own shares is shown as an outflow in Financing Activity as _________.
Option 1: Extraordinary items
Option 2: Cash and cash equivalents
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: Cash and cash equivalents
Solution : Answer = Cash and cash equivalents
Buyback of own shares is shown as an outflow in financing activities because it involves the use of cash or cash equivalents to repurchase shares from shareholders. This transaction represents a capital restructuring activity and is categorized under financing activities in the cash flow statement, impacting the company's capital structure. Hence, the correct option is 2.
Question : Payment for buy-back of Shares is an example of
Question : ------------------is an example of the activity which remains financing activity for every enterprise.
Question : Claim received against damage of fixed assets say because of an earthquake is an example of ____________.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile