Idenitfy out of the following transactions that are shown as Financing Activity:

Repayment of loan taken

Proceeds from issue of shares

Debentures subscribed by the company

Redemption of preference share

Interest paid

Dividend paid

Issue of bonus shares

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Solution

Financing Activity:

Repayment of loan taken

Proceeds from issue of shares

Debentures subscribed by the company

Redemption of preference share

Interest paid

Dividend paid

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Similar questions

Q. Identify the transactions as belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:

(a) Cash Sale of Goods	(b) Cash Received against Revenue from Services rendered
(c) Cash Purchase of Goods	(d) Cash Paid against Services Taken
(e) Patents Purchased	(f) Marketable Securities
(g) Bank Overdraft	(h) Proceeds from Issue of Debentures
(i) Purchase of Shares	(j) Repayment of Long-term Loan
(k) Commission Received	(l) Redemption of Debentures
(m) Interest on Debentures	(n) Interest on Investments
(o) Income Tax Paid	(p) Income Tax Paid on Gain of Sale of Asset
(q) Cash Received from Debtors	(r) Cash Paid to Creditors.

Q. Consider the following statements:
1. The bonus shares shall not be issued in lieu of dividend,
2. A company may issue fully paid up bonus shares to its members out of its 'Capital Redemption Reserve Account'
3. A company may not issue bonus shares out of its 'Securities Premium Account'
Which of the above statement/s is are not correct?

Assuming that the Debt-Equity Ratio is 2 : I, state, giving reasons, which of the following transactions would (I) Increase; (ii) Decrease; (ii.) Not alter the Debt-Equity Ratio :

(i) Issue of new shares (Preference/Equity) for Cash.

(ii) Issue of new shares (Preference/Equity) against purchase of fixed asset.

(iii) Buy-back of its own shares by a Company.

(iv) Issue of Debentures for Cash.

(v) Issue of Debentures against purchase of fixed asset.

(vi) Repayment of Long-term Borrowings.

(vii) Conversion of Debentures into Equity Shares/Preference Shares.

(viii) Sale of a fixed asset at par.

(ix) Sale of a fixed asset at profit.

(x) Sale of a fixed asset at loss.

(xi) Purchase of a fixed asset on a credit of 2 months.

(xii) Purchase of a fixed asset on long-term deferred payment basis.

(xiii) Issue of Bonus Shares.

Q. Classify the following transactions as Operating Activities for a financial company and a non-financial company:

(a) Purchase of Shares on a Stock Exchange.	(b) Dividend received on Shares.
(c) Dividend paid on Shares.	(d) Loans given.
(e) Loans taken.	(f) Interest paid on borrowings.

Q. Consider the following statements:
(1) Preference shares can be redeemed either out of profit of the company or out of the proceeds of fresh issue.
(2) Preference shares are redeemed after equity shares.
(3) Preference shareholders have preference right as to dividend as well as return of capital.
(4) A company cannot issue preference shares redeemable after 20 years.
The correct statements are ________________.

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Idenitfy out of the following transactions that are shown as Financing Activity: Repayment of loan taken Proceeds from issue of shares Debentures subscribed by the company Redemption of preference share Interest paid Dividend paid Issue of bonus shares

Financing Activity: Repayment of loan taken Proceeds from issue of shares Debentures subscribed by the company Redemption of preference share Interest paid Dividend paid

Idenitfy out of the following transactions that are shown as Financing Activity:

Repayment of loan taken

Proceeds from issue of shares

Debentures subscribed by the company

Redemption of preference share

Interest paid

Dividend paid

Issue of bonus shares

Financing Activity:

Repayment of loan taken

Proceeds from issue of shares

Debentures subscribed by the company

Redemption of preference share

Interest paid

Dividend paid