Question

Which of the following transactions is not shown under Financing Activity?

विकल्प

• Dividend Paid

• Repayment of Bank Loan

• Subscribed Shares of Other Company

• Proceeds from Issue of Shares

Answer 1

Subscribed Shares of Other Company

Explanation:

Financing activities focus on transactions that change the size and composition of a company’s own capital and borrowings. While issuing shares, paying dividends, and repaying bank loans all directly impact the company’s internal capital structure, buying or subscribing to shares of another company is considered an deployment of funds into an external asset. Because this transaction involves purchasing a financial asset to earn returns, it is classified under Investing Activities rather than financing activities.