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    • Question

      A company repaid a long-term loan of ₹3,00,000 during

      the year. How is this reported in the cash flow statement?
      A ₹3,00,000 outflow investing activities Correct Answer Incorrect Answer
      B ₹3,00,000 inflow financing activities Correct Answer Incorrect Answer
      C ₹3,00,000 outflow financing activities Correct Answer Incorrect Answer
      D ₹3,00,000 outflow operating activities Correct Answer Incorrect Answer
      E No effect Correct Answer Incorrect Answer

      Solution

      Repayment of long-term borrowings is a cash outflow under financing activities.

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