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      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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