Interest paid on debentures and long-term loans and advances will result in cash from financing activities.

outflow

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inflow

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dIstribution

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disbursement

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Solution

The correct option is A outflow
Interest paid on debentures and long-term loans and advances will result in cash outflow from financing activities because it is a payment.

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Similar questions

Cash proceeds from issue of debentures, loans, bonds and other short/ long-term borrowings will result in cash ___ from financing activities.

Q. Out of the Following, identify the items that are shown in the Note to Accounts on Finance Costs:
(i) Interest paid on Borrowing from prince Finance Ltd.;
(ii) Interest paid on Term Loan to Bank;
(iii) Interest paid on Public Deposits;
(iv) Loss on Issue of Debentures Written off; and
(v) Bank Charges.

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.

Classify the following into (i) Operating Acivities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash Equivalents while preparing a Cash Flow Statement:
1. Cash Sales
2. Cash Received from Trade Receivables
3. Purchase of Building
4. Sale of Building
5. Issue of Share Capital or Debentures
6. Buy- back of Equity Shares
7. Dividend Paid
8. Interest paid on Debentures or Long - term Loans by (a) Finance Company (b) Non- Finance Company
9. Cash Purchases
10. Cash paid to trade payables
11. Redemption of Debentures and Preference Shares
12. Repayment of Long - term Loan
13. Office Expenses
14. Selling and Distribution Expenses
15. Manufacturing Expenses
16. Purchase of Goodwill
17. Sale of Patent
18. Purchase of Investments
19. Sale of Investments by (a) Finance Company (b) Non- Finance Company
20. Commission and Royalty received
21. Interest received on Investments by (a) Finance company (b) Non Finance company
22. Dividend received on Shares by (a) Finance Company (b) Non - Finance company
23. Rent Paid
24. Rent received if (a) Company's main business is property business (b) Other business
25. Income Tax Paid
26. Income Tax Refund received
27. Bank Balance
28. Short- term Deposits in Bank
29. Investment in Short - term or Marketable Securities

From the following information of X Ltd. for the year ended 31st March, 2015 prepare Notes to Accounts on Finance Costs:

$\begin{matrix} Rs (i) Interest paid on Debentures & 1, 80, 000 (ii) Interest paid on Term Loan & 3, 10, 000 (iii) Loan Processing Charges & 60,000 (iv) Interest received on Term Deposits & 75, 000 (v) Discount on Issue of Debentures written off & 20, 000 (vi) Interest paid on Cash Credit & 2, 50, 000 \end{matrix}$

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Interest paid on debentures and long-term loans and advances will result in cash from financing activities.

The correct option is A outflowInterest paid on debentures and long-term loans and advances will result in cash outflow from financing activities because it is a payment.

The correct option is A outflow
Interest paid on debentures and long-term loans and advances will result in cash outflow from financing activities because it is a payment.