Accounting · Funds Flow and Cash Flow Statements
Which of the following would be recorded as a use of funds in a Funds Flow Statement, and simultaneously result in a cash outflow in a Cash Flow Statement?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Redemption of Redeemable Preference Shares.✓
- 2Sale of a fixed asset at book value.
- 3Declaration of a dividend, but not yet paid.
- 4Writing off Preliminary Expenses against Securities Premium Reserve.
Correct answer
Redemption of Redeemable Preference Shares.
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