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      Question

      Which of these is an example of a financing activity for lessee under cash flow statement?

      A Repayment of principal portion of lease liability Correct Answer Incorrect Answer
      B Depreciation on ROU asset Correct Answer Incorrect Answer
      C Lease payments --- interest portion (classification depends on policy) Correct Answer Incorrect Answer
      D Payment of operating expenses Correct Answer Incorrect Answer

      Solution

      Under Ind AS 116, repayments of the principal portion of the lease liability are classified as financing cash flows.

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