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      Question

      A company repays part of long-term loan. In cash flow

      statement (indirect method), repayment is shown in:
      A Operating activities Correct Answer Incorrect Answer
      B Investing activities Correct Answer Incorrect Answer
      C Financing activities Correct Answer Incorrect Answer
      D Non-cash transactions Correct Answer Incorrect Answer
      E As adjusting item to profit Correct Answer Incorrect Answer

      Solution

      Repayment of borrowings is a financing cash outflow.

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