An example of cash flow from a financing activity is ___________________.

Receipt of cash from sale of land.

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Receipt of cash from collection of accounts receivable.

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Payment of cash for acquisition of treasury stock.

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Payment of cash for new machinery.

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Solution

The correct option is C Payment of cash for acquisition of treasury stock.
As per AS-3, financing activities are activities are activities that result in change in the size and composition of the owners' capital and borrowings of the enterprises.

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