Which of the following will be shown in cash flow statement ?
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Shift 26/05/2023 8:30 AM - 10:30 AM
Correct Answer
Detailed Explanation
The cash flow statement primarily reflects cash transactions. Among the given options:
Issue of shares to vendors: This won't be directly reflected in the cash flow statement, as it involves an exchange of shares, not cash.
Conversion of debentures into shares: This also involves a conversion of securities, and it doesn't directly affect the cash flow.
Issue of bonus shares: Bonus shares are issued without receiving any cash, so this won't be shown in the cash flow statement.
Redemption of preference shares at a premium: The redemption of preference shares involves an outflow of cash. This transaction would be shown in the financing activities section of the cash flow statement.
So, the only transaction directly affecting the cash flow statement would be the redemption of preference shares at a premium.
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