Question

Which one is Cash Outflows from Financing activities?

Options

• Cash proceeds from issuing shares or other similar instruments.

• Cash proceeds from issuing debentures, loans, bonds and other short or long-term borrowings.

• Cash repayments of amounts borrowed.

• None of the above

Answer 1

Cash repayments of amounts borrowed.

Explanation:

Cash Outflows from financing activities are:

1. Interest paid on loans, debentures and advances.
2. Dividends paid on equity and preference capital.
3. Cash repayments of amounts borrowed.