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Identify the items not to be shown under Financing activities while making cash flow:-

A. Payment of dividend and interest

B. Interest paid by financial enterprise

C. Redemption of debentures

D. Proceeds from issue of equity shares

E. Loss due to theft

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

A, C and D are clearly financing activities. Interest paid by a financial enterprise (B) is treated as an Operating activity because lending/borrowing is the main business. Loss due to theft (E) is a non-cash item/extraordinary item, not shown under financing. Hence items NOT under financing = B and E.

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