[amp_mcq option1=”I, II, III and IV” option2=”II, III and IV” option3=”III and IV” option4=”Only IV” correct=”option4″]
The correct answer is D. Only IV.
The flow of funds is the movement of money into and out of a business. It is important to track the flow of funds in order to ensure that the business is financially healthy.
In the given question, only option IV involves the movement of funds. When a company issues shares in lieu of raw materials, it is essentially exchanging shares for goods. This results in a flow of funds from the company to the supplier of the raw materials.
Options I, II, and III do not involve the movement of funds. When a company raises short-term loans, it does not necessarily mean that it will receive the funds immediately. The funds may be received in the future, and they may be used for a variety of purposes. When a company purchases goods for cash, it is essentially exchanging cash for goods. This does not result in a flow of funds. When a company pays a bonus in the form of shares, it is essentially exchanging shares for cash. This does not result in a flow of funds.
Therefore, the only option that involves the flow of funds is option IV.