Economics · Financial Statements
During the preparation of a Fund Flow Statement for a textile unit, it is observed that the company has issued bonus shares to existing shareholders in the ratio of 1:1 by capitalizing its general reserves. How will this transaction be reflected in the Fund Flow Statement?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1It will not be shown in the Fund Flow Statement as it does not involve any flow of working capital.✓
- 2It will be shown as both a source and an application of funds.
- 3It will be shown as an application of funds under Redemption of Reserves.
- 4It will be shown as a source of funds under Issue of Shares.
Correct answer
It will not be shown in the Fund Flow Statement as it does not involve any flow of working capital.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Financial Statements MCQs →Want more practice questions on Financial Statements?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Financial Statements