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      Question

      Which of the following is classified as financing cash

      flow?
      A Interest paid by a manufacturing company Correct Answer Incorrect Answer
      B Dividend received by financial company Correct Answer Incorrect Answer
      C Proceeds from issue of shares Correct Answer Incorrect Answer
      D Income tax refund Correct Answer Incorrect Answer
      E Purchase of inventory Correct Answer Incorrect Answer

      Solution

      β€’ Financing activities include inflows/outflows from equity and borrowings β€” issuing shares is financing inflow.

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