Question

Select the appropriate answer from the alternatives given below & rewrite the completed statements :

Cash proceeds from issue of debentures is _______________.
a) financial activity
b) non financial activity
c) operating activity
d) trading activity

Answer 1

Cash proceeds from issue of debentures is financial activity.

Explanation: Cash proceeds from issue of debentures are classified as financial activity for the business, as it relates to arrangement of funds for the business.