Question

Issue of debentures for consideration other than cash is shown under which activity?

Options

• Operating activity

• Investing activity

• Financing activity

• None of the above

Answer 1

None of the above

Explanation:

Issuing debentures for non-cash consideration (e.g., asset purchase) is a non-cash financing activity. It doesn’t involve actual cash flow, so it’s disclosed separately in the notes, not under any main activity category.