aloo_samosa
SSCBS
Cash flow doubt
When we repay the short term loans that we had taken then we record in under the financing activity but this reduces our current liability so do we also record it under working capital changes under operating activity?
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only in financing
Why
cuz short term loan though is current liability as well , it is majorly a financing activity . remember 'marketing securities'? they are current assets but we consider it as cash and cash equivalent and give its treatment in column D . Same is the case for short term borrowings.
Ok thank you