Question
Which transactions are always financing activities?

Answer

Following transactions are always Financing activities
Activities through cash inflow : Issue of equity share, preference share and debentures increase in bank overdraft, procurement of loan and creation of long term liabilities etc. Activities through cash outflow : Buy back of equity shares, redemption of preference share and debentures, redemption of loan or any other long term liabilities, reduction in bank overdraft, interest paid on debt etc.

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