Multiple choice

Which of the following is the cash receipt from financing activity?

  1. Cash received from issue of debentures

  2. Cash received from sale of goods

  3. Cash received from debtors

  4. Cash receipt from disposal of fixed assets
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A Correct answer
Explanation

It is an item of financing activity. By issuing of debentures, we get finance for our business from the debenture holders in the form of borrowings or loan.

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