Question

Which among the following will not lead to generation of cash flows in financing activities?

A Raising debt through debentures Correct Answer Incorrect Answer
B Taking a long-term bank loan Correct Answer Incorrect Answer
C Issuing right shares Correct Answer Incorrect Answer
D Issuing Zero Coupon Bonds Correct Answer Incorrect Answer
E Issuing Bonus Shares Correct Answer Incorrect Answer

Solution

In case of bonus issue, there are no cash inflows. The profits are transferred to Capital A/c. 

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