Question

How will you deal increase in the balance of ‘securities premium’ while preparing a cash flow statement?

विकल्प

• Cash flow from operating activities

• Cash flow from investing activities

• Cash flow from financing activities

• Cash equivalent

Answer 1

Cash flow from financing activities

Explanation:

A securities premium occurs when a company issues shares at a price above their face value. Since issuing shares falls under financing activities, the cash flow statement records the increase as a cash inflow under that category.