Skip to main contentSkip to solution

Identify the Cash Outflow from Financing Activity

Solution

✅ Correct Option: 4

Increase in share capital and proceeds from long term borrowings are cash inflows from financing activities. Dividend received is an inflow (typically from investing activity for non-financial companies). Repayment of bank overdraft involves payment of cash to settle borrowings, hence it is a cash outflow from financing activities.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question