Which of the following would not be considered a cash flow from “operating” activities for a non-financial company?

Payment for purchase of inventory

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Payment to trade payables

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Payment of wages

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Payment of interest on loan

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Solution

The correct option is D
Payment of interest on loan

Payment of interest on loan would not be considered as a cash flow from operating activities for a non-fianncial company. It is an operating activity for a financial company.

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The Debt-Equity Ratio of a Company is 1 : 2. Which of the following would increase, decrease or not change it ?

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