Repayment of bank loan
Interest on debentures or dividend paid
Cash proceeds from public deposits
Sale of fixed assets
Answer is Right!
Answer is Wrong!
The correct answer is D. Sale of fixed assets.
Financing activities are activities that result in changes in the size and composition of the equity and liabilities of an entity. Examples of financing activities include:
- Borrowing money by issuing debt securities or taking out a loan.
- Repaying debt.
- Issuing or repurchasing shares.
- Paying dividends.
The sale of fixed assets is an investing activity, not a financing activity. Investing activities are activities that result in changes in the long-term assets of an entity. Examples of investing activities include:
- Acquiring property, plant, and equipment.
- Selling property, plant, and equipment.
- Making long-term investments in other companies.
- Collecting cash from long-term investments.
I hope this helps!