Economics · Cash Flow Statement
In the context of Accounting Standard 3 (Revised), which of the following transactions would be specifically categorized as a cash outflow from financing activities while simultaneously affecting the capital structure of a banking or corporate entity?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Conversion of convertible debentures into equity shares of the same company
- 2Payment of dividends to equity shareholders including dividend distribution tax✓
- 3Purchase of treasury bills by a commercial bank for its investment portfolio
- 4Payment of interest on short term borrowings by a manufacturing firm
Correct answer
Payment of dividends to equity shareholders including dividend distribution tax
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