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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

    • Financing activities include inflows/outflows from equity and borrowings — issuing shares is financing inflow.

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