The correct answer is: B. buy back of shares
Financial activities in a cash flow statement as per AS-7 do not include buy back of shares.
A cash flow statement is a financial statement that shows how much cash a company has received and spent over a period of time. It is divided into three sections: operating activities, investing activities, and financing activities.
Operating activities are the day-to-day activities of a business, such as selling goods or services. Investing activities are the purchase and sale of long-term assets, such as property, plant, and equipment. Financing activities are the raising and repaying of money, such as issuing shares or taking out loans.
Buy back of shares is a financing activity, as it involves the company using cash to buy back its own shares. This is different from issuing shares, which is an investing activity, as it involves the company raising cash by selling new shares.
The other options are all examples of operating activities. Option A, issue of shares, is when a company sells new shares to raise cash. Option C, purchase of building, is when a company buys a new building. Option D, dividend paid, is when a company pays out cash to its shareholders.