Question

How will you treat payment of ‘interest on debentures’ while preparing a cash flow statement?

पर्याय

• Cash flow from operating activities

• Cash flow from investing activities

• Cash flow from financing activities

• Cash equivalent

Answer 1

Cash flow from operating activities

Explanation:

Interest on debentures paid is treated as an operating activity under AS-3 for non-financial enterprises, as it’s considered a cost of financing operations.