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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): By-back of equity shares comes under financing activities.
Reason (R): Financing activities are the activities which result in change in size, composition of owner's capital and borrowing of the enterprise from other sources.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Proceeds from Issue of Shares and Debentures are recorded in Financing Activity.
Reason (R): Issue of shares and debentures are the cash inflow or outflow made to finance the company.
The issue of Equity and preference share capital for cash only. The issue of Debentures, Bonds and long-term note for cash only.
A company's cash flow from financing activities refers to the cash inflows and outflows resulting from the issuance of debt, the issuance of equity, dividend payments, and the repurchase of existing stock.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Depreciation is added to the net profit before tax.
Reason (R): Depreciation is a non-cash item which is an expense.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Sale of fixed assets is written under the Investing Activities.
Reason (R): Sale of fixed assets leads to inflow of cash.
56 videos|89 docs|68 tests
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56 videos|89 docs|68 tests
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