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Cash Flow from Financing Activities

Public deposi...

Question

Public deposit obtained by a company means _______________.

A

Deposits received from Government

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B

Deposits received from public at large

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C

Deposits received from stockists and agents

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D

All the above

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Solution

The correct option is D Deposits received from public at large
Public deposits obtained by a company means the deposits received by the company from public at large. Public deposits are unsecured, long term debt instrument. They have a slightly higher rate of interest when compared to that of interest rates of banks. They are usually issued to meet the working capital needs of the company.

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